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RBC ups targets on specialty lenders due to UK economic resilience

Fri, 23rd Sep 2016 08:34

(ShareCast News) - Analysts at RBC revised their price targets for UK challenger banks higher as a result of the resilience shown thus far by the economy and the support provided by the Bank of England.The broker also revised its forecasts higher for Aldermore,Close Brothers and Shawbrook."While we note that significant uncertainty remains regarding the outlook for the UK economy, we believe that these early indicators are significant enough to be reflected in updated cost of equity assumptions for the Specialty Lenders subsector, and consequently our price targets," analyst Peter Lenardos said in a research note sent to clients.Cost of equity assumptions for Close Brothers, Paragon and OSB were all cut by half a percentage point to 10.5%, 11.0% and 13.0%, respectively.Those for Aldermore and Shawbrook were cut by a full percentage point to 13.0% and 15.0%, respectively.RBC's recommendation on Aldermore and Close Brothers was kept at 'sector perform', while its target price on the former was hiked from 175p to 190p while that on the latter went up from 1118p to 1254p.OSB and Paragon were both kept at 'outperform', with the target on the former revised from 290p to 305p and that on Paragon from 350p to 370p.Shawbrook was kept at 'underperform' and the target boosted from 185p to 210p.For OneSavings Bank, Lenardos based his recommendation on the lender's "strong growth profile" and exceptional cost control, while the main considerations for Paragon were its valuation below book value and ongoing diversification efforts.
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25 Aug 2016 14:47

FTSE 250 movers: eOne too pricey for ITV, smaller banks a bargain says Merrill

(ShareCast News) - The FTSE fell along with much of the market on Thursday, with Entertainment One and Just Eat leading the way lower. Entertainment One, known as eOne and distributor of the 'David Brent: Life on the Road' film currently in cinemas, was sent skidding as ITV swerved a potential takeo

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25 Aug 2016 12:09

Broker tips: Playtech, Aldermore, Shawbrook, Just Eat

(ShareCast News) - Playtech shares gained on Thursday as Canaccord Genuity raised its target price to 1,125p from 902p and reiterated a 'buy' rating on the stock after the gambling software developer reported its first half results. In the six months to the end of June, revenues rose to €337.7m from

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25 Aug 2016 09:41

Aldermore, Shawbrook boosted by BofA ML upgrade

(ShareCast News) - Challenger banks Aldermore and Shawbrook got a boost on Thursday as Bank of America Merrill Lynch lifted its recommendations on the stocks to 'buy' from 'neutral'. BofA said the introduction of the Bank of England's term funding scheme (TFS) along with a reduction in the UK macroe

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8 Aug 2016 17:21

Industrial metals and mining shares pace advance

(ShareCast News) - Investors continued to shift out of the more defensive segments of the stockmarket and towards cyclical sectors in the wake of the previous session´s unexpectedly strong US jobs feport for July. Industrial Metals & Mining thus received a boost as steel futures climbed. Overnight,

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27 Jul 2016 09:50

Shawbrook income and profit rise in first half

(ShareCast News) - Shawbrook Group posted interim results for the six months to 30 June on Wednesday, with net operating income improving to £99.3m, compared with £77.1m a year ago. The FTSE 250 firm said that of that, interest income, net fee and operating lease income was £140.1m - up from £107.5m

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20 Jul 2016 15:06

UK Earnings, Trading Statements Calendar - Next 7 Days

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12 Jul 2016 11:30

Tuesday newspaper share tips: Challenger banks, Rolls Royce

(ShareCast News) - The share price drops in Britain´s challenger banks following the Brexit referendum looked overdone, the Financial Times´s Lex column argued. Over the two weeks after the vote shares in Aldermore, OneSavings, Shawbrook and Paragon gave back between 12% and 40% of their market capi

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5 Jul 2016 08:39

BROKER RATINGS SUMMARY: Jefferies And Liberum Downgrade UK Retailers

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5 Jul 2016 07:37

LONDON MARKET OPEN: Real Estate Investors Hit By SocGen Downgrades

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4 Jul 2016 18:25

FTSE 250 movers: house builders in focus as mid caps sour

(ShareCast News) - FTSE 250 stocks ended on a sour note with residential property-linked stocks figuring prominently among the fallers as UK construction data disappointed. Clarkson led to the downside as it warned full-year 2016 profits would be "materially lower" on the year due to lower freight r

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30 Jun 2016 15:29

FTSE 250 movers: Broader rebound outweighs ongoing housing rout

(ShareCast News) - The FTSE 250 continued to rally on Thursday alongside its blue chip sibling as a broad-based rebound across sectors outweighed continued softness for housing-related stocks after the Brexit vote. Half an hour before the close, the FTSE 250 was up 0.65% to 16,106.31. Some of t

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30 Jun 2016 07:23

LONDON BRIEFING: Shares Open Down As Tory Party Leadership Race Begins

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29 Jun 2016 18:40

Life insurers, oil stocks boost indices

(ShareCast News) - Life insurers jumped on Wednesday on the heels of positive broker comment and supportive remarks from some ex-officials regarding the fall-out, or not, for the sector as a result of Brexit. Prudential´s shares rallied after Barclays reiterated an 'overweight' rating and target pri

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29 Jun 2016 16:41

DIRECTOR DEALINGS SUMMARY: Shawbrook Deputy CEO And HR Boss Buy

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29 Jun 2016 14:25

DIRECTOR DEALINGS: Shawbrook Deputy CEO And HR Director Buy Shares

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