Barclays double-upgrades Virgin Money to 'overweight'
Virgin Money UK
195.10p
16:20 17/09/21
1.11%
2.15p
Barclays upgraded its stance on shares of Virgin Money on Wednesday to ‘overweight’ from ‘underweight’ and hiked the price target to 165p from 100p.
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16:25 17/09/21
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The bank said it reckons Virgin Money is best placed to enjoy a mortgage tailwind, which it sees as sustainable from 2021, alongside asset quality better than many peers.
"We see long-term value from strong pre-provision operating profit recovery, with Virgin Money on course for double-digit returns beyond 2022," Barclays said.
"Despite the recent share price rally, we think valuation is attractive at 6.1x 2022e earnings (versus sector at 8.6x) or 0.6x TNAV for a 9.7% return on tangible equity."
At 0955 GMT, the shares were up 4.5% at 148p.