This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Attractive technical set-up which looks very similar to peer Lloyds. UK inflation at 4yr highs puts pressure on bank of England to increase interest rates which would boost UK bank profitability. US Fed likely to hike interest rates again this year, which is good for banks globally. Hopes that RBS business turnaround can echo that of peer Lloyds which is back to profit and paying dividends. Recent settlement with shareholders over 2008 bailout is removes a cloud hanging over it.
Consensus is majority neutral-to negative, meaning significant potential for upgrades to ratings as the shares rebound, especially with over 60% of target prices suggesting upside from current levels. Our trade objective is only just above consensus, and only looking to revisit May highs.
Next Event: Q2 Results, 4 Aug
Latest Broker 12-Month Consensus: 19% Buy, 50% Hold, 31% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 0.0 | -5.7 | 4.1 | 8.1 | -0.3 | -30.5 | -24.3 | -11.3 | 2.7 |
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