Alexander Bueso Sharecast News

19 Apr, 2021 10:43 19 Apr, 2021 10:43

ShoreCap continues to see 'positive momentum' in UK banks' shares

Barclays

266.45p

17:15 03/01/25

-0.17%

-0.45p

ShoreCap analysts continued to see "positive momentum" in UK banks' shares on the back of successful Covid-19 vaccine rollouts.

Banks

4,917.32

16:54 03/01/25

-0.20%

-9.83

FTSE 100

8,223.98

16:59 03/01/25

n/a

FTSE 250

20,591.40

17:00 03/01/25

n/a

FTSE 350

4,534.15

16:54 03/01/25

n/a

FTSE All-Share

4,490.88

17:14 03/01/25

n/a

HSBC Holdings

782.30p

16:40 03/01/25

-0.14%

-1.10p

Lloyds Banking Group

54.36p

17:11 03/01/25

-1.24%

-0.68p

NATWEST GROUP

403.00p

16:40 03/01/25

0.22%

0.90p

Standard Chartered

989.00p

16:40 03/01/25

0.41%

4.00p

Virgin Money UK

1,662.80p

16:30 03/01/25

-0.18%

-3.00p

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.