Share Prices & Company Research

Market News

10 Mar 2021 | 13:16

Shore cuts rating on 'too far, too soon' Virgin Money

(Sharecast News) - Virgin Money UK's shares have risen "too far, too soon", Shore Capital said as the broker cut its rating on the bank to 'hold'. In a cautious note about the UK banking sector, Shore said Virgin Money's return to profit in the first quarter was encouraging. Given the improving economic outlook in the UK, Shore upgraded earnings estimates based on lower impairment charges and forecast a small annual statutory attributable profit. It had previously predicted a loss.

A steepening yield curve and opportunities to reprice deposits could allow earnings to surprise on the upside, Shore said. The broker increased its fair value estimate for Virgin Money to 185p a share from 155p.

"But with the shares already above this level we think they have run too far, too soon and so downgrade our recommendation to 'hold' from 'buy'," Shore analyst Gary Greenwood said.

Virgin Money's shares had gained more than 50% in 2021 before Greenwood published his note. The shares fell 4.8% to 190p at 1:31 GMT on Wednesday.

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.