ShoreCap continues to see 'positive momentum' in UK banks' shares
Barclays
185.84p
16:40 19/04/24
ShoreCap analysts continued to see "positive momentum" in UK banks' shares on the back of successful Covid-19 vaccine rollouts.
Banks
3,895.51
17:09 19/04/24
FTSE 100
7,895.85
16:59 19/04/24
FTSE 250
19,391.30
17:09 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
HSBC Holdings
646.20p
16:44 19/04/24
Lloyds Banking Group
50.92p
16:34 19/04/24
NATWEST GROUP
276.70p
16:34 19/04/24
Standard Chartered
666.80p
16:40 19/04/24
Virgin Money UK
1,696.80p
16:34 19/04/24
Linked to that were the economic benefits that followed, including steepening yield curves, alongside ongoing government support.
As well, while banks' share prices were now trading near ShoreCap's so-called 'fair value' estimates, they continued to sport discounts to their tangible book value.
"So ratings remain undemanding in that sense," ShoreCap added.
Furthermore, bank earnings were highly cyclical, meaning that those fair value estimates might yet be pushed higher "in due course".
"So, while the sector is no longer offering the outstanding value that we felt it was when we were pushing the buy case hard in the middle of last year, we still see positive momentum."
ShoreCap reiterated its 'buy' stance for shares of Barclays, Lloyds, and StanChart, while remaining at 'hold' for HSBC, NatWest and Virgin Money UK.