Peel Hunt downgrades OSB Group, shares drop

OSB Group tumbled on Wednesday as Peel Hunt downgraded the shares to ‘hold’ from ‘add’ but lifted the price target to 414p from 395p.

"Due to ongoing weak conditions in the mortgage market and a recent £1.25 billion securitisation issue, we now anticipate negative loan growth in 2024 and lower growth than previously expected for both 2025 and 2026," the broker said.

Nevertheless, it said the outlook for OSB's medium-term returns has improved slightly.

At 1620 GMT, the shares were down 6.1% at 393.80p.