Berenberg upgrades RBS to Buy
Analysts at Berenberg bumped up their recommendation on stock in RBS, pointing to an expected trough in the lender´s tangible book value at roughly 285.0p.
Banks
3,895.51
17:09 19/04/24
FTSE 100
7,895.85
16:59 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
NATWEST GROUP
276.70p
16:34 19/04/24
They not only saw the potential for TBV growth in 2018 but also for to dividends to restart.
Now that RBS was planning to keep Williams & Glyn (W&G), together with its sustained focus on costs, its core business should be able to generate 25.0p of earnings per share, for a 10.0% return on tangible equity.
Yes, the £9bn settlement with the Department of Justice would be the second-biggest settlement of any lender, but it would still leave 35p of excess capital, the German broker said.
Berenberg upgraded its recommendation on the lender's shares to 'Buy' with a 275.0p target price.
-- More to follow --