This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Attractive share price breakout opens the door for a rally towards Jan highs. Q1 Results, if better than expected, could be the catalyst for further share price gains. RBS less exposed to PPI than peer Lloyds. Any further news on settlement of US litigation (miss-selling) could clear more of the cloud hanging over the shares. As could any hints on government stake sales, share buybacks or even dividends (unlikely). After posting its first FY profit in almost a decade (in Feb), will it be able to add to this with a profitable first quarter?
Broker consensus is positive (only 10% are Sellers), but with a significant 50% of Neutrals. This offers potential for the current share price breakout to encourage said Neutrals to upgrade their ratings to Buy. Especially with 81% of analysts target prices suggesting upside from current levels.
Next Event: RBS Q1 Results, 27 Apr (Lloyds on Weds, Barclays on Thurs)
Latest Broker 12-Month Consensus: 39% Buy, 50% Hold, 11% 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 | 6.4 | -7.8 | -2.1 | 16.3 | 12.8 | -21.5 | -9.5 | -2.3 |
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