ShoreCap continues to see 'positive momentum' in UK banks' shares
By Alexander Bueso
Date: Monday 19 Apr 2021
(Sharecast News) - ShoreCap analysts continued to see "positive momentum" in UK banks' shares on the back of successful Covid-19 vaccine rollouts.
Linked to that were the economic benefits that followed, including steepening yield curves, alongside ongoing government support.
As well, while banks' share prices were now trading near ShoreCap's so-called 'fair value' estimates, they continued to sport discounts to their tangible book value.
"So ratings remain undemanding in that sense," ShoreCap added.
Furthermore, bank earnings were highly cyclical, meaning that those fair value estimates might yet be pushed higher "in due course".
"So, while the sector is no longer offering the outstanding value that we felt it was when we were pushing the buy case hard in the middle of last year, we still see positive momentum."
ShoreCap reiterated its 'buy' stance for shares of Barclays, Lloyds, and StanChart, while remaining at 'hold' for HSBC, NatWest and Virgin Money UK.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN