RIT Capital, Caledonia Overweighted; Record NAV Discounts

Barclays initiates coverage, rates RIT Capital Partners and Caledonia Investments overweight, setting price targets of 2,660p and 420p respectively.
Both stocks trade at deep discounts to NAV—RIT Capital 25.9% and Caledonia 35.3%—the widest on record.
Barclays forecasts 8% NAV return for RIT Capital (discount 17%) and 6% for Caledonia (discount 30%) over 12 months.
RIT Capital posted £232 m (18.7% of portfolio) and gearing 3.2% NAV; Caledonia’s cash from Stonehage Fleming sale will be 13% NAV.