This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Bullish breakout. Solid results from US banks has boosted optimism about UK banks reporting around month-end. CEO António Horta-Osório (architect of major turnaround) says management reshuffle doesn’t mean his imminent departure. Back paying generous dividends (RBS not yet). Less investment banking means lower risk and less impact from Brexit. Lower inflation may man BoE not ready to hike, but lower rates may mean borrowers do more business. Strong housing market good for UK’s biggest mortgage book.
Consensus is majority bullish with potential for upgrades by Neutrals (or even the 30% of sellers) as shares break higher to trade 1-month highs. Note >70% of broker targets suggesting upside from current levels. Average of all July updates suggests a target of 74.5p, beyond our trade objective and above end-May 13-month highs.
Next Event: Q2 Results (27 July), BoE interest rate update (3 Aug)
Latest Broker 12-Month Consensus: 57% Buy, 14% Hold, 29% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 3.6 | -0.4 | 7.5 | 5.7 | 23.4 | -21.7 | -6.8 | -1.2 | 126.3 |
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research