Citi downgrades Virgin Money after outperformance
Virgin Money UK
1,706.30p
16:34 26/04/24
0.60%
10.20p
Citi downgraded its recommendation on shares of challenger bank Virgin Money on Friday to ‘neutral’ from ‘buy’, pointing to the stock’s recent outperformance.
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16:59 26/04/24
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16:59 26/04/24
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16:59 26/04/24
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17:14 26/04/24
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Citi noted Virgin shares are up more than 50% in the past month, well above larger domestic peers and the European bank sector, both of which are up around 30%.
After full-year results earlier in the week, Citi upped its FY21 earnings per share by 9% but left estimates for FY22 unchanged.
Citi said it remains constructive on the company’s self-help potential but is downgrading the stock given its relatively high mid-teens price-to-earnings ratio on FY21 earnings per share.