SHAW.L Share News (SHAW)

SHAW.L Information

There is currently no data for SHAW

Tuesday newspaper share tips: Challenger banks, Rolls Royce

Tue, 12th Jul 2016 11:30

(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 capitalisations, yet investors in their bonds barely flinched as reflected in the nearly unchanged prices for those instruments.Aldermore would appear to be a particularly egregious case, the tipster explained.For the book value implied in its share price to be correct would require that its loan impairments rise by a factor of 28 from their level in 2015 (to £7.16 for every £100 of loans).Yet during the 2008/9 crisis, the likes of Paragon recorded an increase of just 170 basis points in impairments with actual losses peaking at 33 basis points. Loan-to-value ratios for mortgages are also now much lower, for example, Lex said.Furthermore, gilt yields imply interest rates atying lower for longer, helping to make mortgages more affordable. "Yes, lender probably face a downturn, but investors are pricing in a disaster." Rolls Royce´s purchase of the 53.0% of Spanish engine-component manufacturer ITP it did not already own may not be a reason to boast, Lex said.Indeed, the acquistion was triggered by that country´s privately-owned engineering group Sener, which held an option to sell its stake.ITP builds components for engines, including Rolls´s Trent series, and has worked with Rolls Royce since the late-1980´s.At €720m (and no debt), or 11.5 times´ ITP´s 2015 earnings before interest, tax, depreciation and amortisation, that might look like much for a £13.5bn company.However, Rolls´s internal restructuring is already putting pressure on profits and cash flow.Indeed, UBS calculates Rolls Royce will need to borrow to pay its sharply reduced 2016 dividend.As well, economic uncertainty on the other side of the channel may lead airlines to cut capacity, thus reducing demand for engine maintenance.Like the sudden downpour at Farnborough yesterdaym external events may yet rain on Rolls´s parade too.

More News

16 Feb 2017 09:53

Panmure initiates coverage of challenger banks

(ShareCast News) - Panmure Gordon initiated coverage on several challenger banks on Thursday, highlighting a preference for specialist lenders as they have avoided direct competition with large UK banks and offer high growth and returns at attractive valuations. The brokerage started Aldermore, OneS

16 Feb 2017 08:41

LONDON MARKET OPEN: Airlines Up As Cobham Suffers From Profit Warning

7 Feb 2017 11:09

Shawbrook appoints Dylan Minto as CFO

(ShareCast News) - Challenger bank Shawbrook Group has appointed Dylan Minto as chief financial officer and executive director with effect from 6 February. The specialist lending and savings bank said Minto's appointment follows an extensive market search for the best candidate following the departu

21 Dec 2016 09:25

BROKER RATINGS SUMMARY: RBC Upgrades Shawbrook To Sector Perform

21 Dec 2016 07:39

RBC Capital ups Shawbrook to 'sector perform', lifts EPS estimates

(ShareCast News) - RBC Capital Markets upgraded challenger bank Shawbrook to 'sector perform' from 'underperform' and lifted the price target to 280p from 210p as it upped its earnings forecasts. The bank noted the stock is off 26% this year versus the sector average off 2%. In addition, it pointed

13 Dec 2016 10:09

Liberum initiates coverage of challenger banks, prefers OneSavings

(ShareCast News) - Liberum initiated coverage of five challenger banks with three 'buy' recommendations and two 'hold' stances. The brokerage started OneSavings Bank, Shawbrook and Aldermore at 'buy' with price targets of 395p, 290p and 245p, respectively. It said OneSavings is making regulatory ch

14 Nov 2016 14:40

Sector movers: Banks lead gains as strategists raise US yield forecasts

(ShareCast News) - Shares in banks and life insurance outfits continued to pace gains as Treasury yields kept moving higher in the States on expectations for a fiscal spending boost under the new Administration, pulling interest rates across the globe up with them. For the most part, analysts app

14 Nov 2016 14:05

FTSE 250 movers: Greencore and banks gain while gold miners fall

(ShareCast News) - The FTSE 250 index was in positive territory, just shy of 17,500, by the late afternoon on Monday. Irish food company Greencore led the risers, gaining on the back of jump in full-year revenue and earnings, a hike in its dividend and the proposed acquisition of Peacock Foods for a

3 Nov 2016 17:55

CORRECT: LONDON MARKET CLOSE

3 Nov 2016 16:14

Director dealings: Shawbrook stand-in CFO likes what he sees

(ShareCast News) - Shawbrook Group's stand-in chief financial officer, Dylan Minto, snapped up shares in the challenger bank on Thursday after it posted a strong set of third quarter results. Minto, who was director of strategy before his temporary promotion, bought 15,000 shares at 237.74p and 5,00

3 Nov 2016 08:26

Shawbrook posts solid quarter with 'minimal' impact from Brexit

(ShareCast News) - Shawbrook Group issued its interim management statement for the nine months to 30 September on Thursday, reporting a stable net interest margin of 5.6%, with continued tailwinds expected from deposit book repricing following the Bank of England base rate cut in August 2016. The FT

26 Oct 2016 09:12

Banks' mortgage approvals rebound from low, BBA data shows

(ShareCast News) - Mortgage approvals from high street banks rebounded slightly in September, according to data from high street banks, after hitting a 19-month low in August. The British Bankers' Association (BBA) revealed mortgage approval numbers in September of 38,252, which was up from 37,241 i

25 Oct 2016 11:46

Credit Suisse sees rising risks for challengers banks Aldermore, Shawbrook

(ShareCast News) - OneSavings Bank received an upgrade but Aldermore and Shawbrook were downgraded by Credit Suisse as it warned the risks facing the UK's challenger banks were "becoming harder to ignore" heading into 2017. Following solid share price recoveries in recent months, the risk-reward for

25 Oct 2016 07:15

LONDON BRIEFING: Pound And Shares Firm Ahead Of UK Airport Decision

23 Sep 2016 08:34

RBC ups targets on specialty lenders due to UK economic resilience

(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

Latest Share Chat

SHAW.L Share News (SHAW)

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Tuesday newspaper share tips: Challenger banks, Rolls Royce

Login to your account

Quickpicks are a member only feature

Login to your account