Why is Bridgepoint stock rallying 4% today?

Bridgepoint stock is experiencing a 4.2% rally, reaching a new 52-week high of 402p and currently trading at 398.56p, due to a Deutsche Bank price target raise and a significant trading update. The Deutsche Bank price target was raised from £4.30 to £4.60, maintaining a Buy rating, while Bridgepoint disclosed an upgrade to its 2026 EBITDA guidance, with performance-related earnings now expected to account for 37-39% of total income by 2026.

Additionally, the company announced a 50% increase in its quarterly dividend to 15p per share and introduced a new capital return policy, targeting returns of 40-60% of Cash from Profits from 2027. This combination of factors, alongside a favorable market backdrop, has fueled the stock's surge and outperformed the broader FTSE 100.

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