Shore Capital highlights 'significant' growth potential at Shawbrook
By Benjamin Chiou
Date: Monday 01 Dec 2025
(Sharecast News) - The recent rally in Shawbrook's stock has further to run, according to Shore Capital, which initiated coverage of the banking group with a 'buy' rating on Monday.
The company returned to public markets on 30 October, and had experienced some selling pressure until mid-November, before jumping more than 16% over the past six sessions. As a result, it has gained over 8% since its IPO, helped by a 2.3% gain to 426.8p by midday Monday.
Shore Capital, however, has a fair value estimate on the stock of 475p, implying 14% upside from Friday's closing price, as the broker highlighted the business's "significant growth potential".
Since 2017, when Shawbrook was taken private, the company has grown its net loan book by 3.5 times to around £17bn by the first half of this year. Management, however, want this to increase to around £30bn by 2030.
"If the group can deliver on this target and sustain a high-teens underlying return on tangible equity, as planned, then it could see earnings grow to 90-100p in due course," Shore Capital said.
"While this goal may appear ambitious in a relatively low growth UK economy, the group has access to a large and growing total addressable market where it is also taking share."
The broker estimates that Shawbrook's total addressable market is roughly £300bn - a market that is also growing.
Meanwhile, potential bolt-on acquisitions could also add to the company's potential, Shore Capital said, with the company having a "decent track record of adding capability through M&A".
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