RBS: stock up after broker raises target price
(CercleFinance.com) - Royal Bank of Scotland shares are up on Tuesday after a broker raised its target price for the bank's share, citing the prospect of lower funding and higher shareholder returns.
In a note to clients, Morgan Stanley says it sees room for RBS to improve its capital structure, reducing funding costs and increasing shareholder returns via share buybacks and/or special dividends.
Maintaining his "overweight" rating on the stock, the analyst increased his target price from 315 pence to 335 pence.
Morgan Stanley also increased its 2020 earnings estimates by 8%, forecasting a total shareholder return of over 20% in 2018-2020, based on a 100%-dividend payout ratio.
After these comments, RBS shares were up 0.47% at 256.4 pence in afternoon trading on the London Stock Exchange, while the broader FTSE 100 index was trading down 0.4%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
In a note to clients, Morgan Stanley says it sees room for RBS to improve its capital structure, reducing funding costs and increasing shareholder returns via share buybacks and/or special dividends.
Maintaining his "overweight" rating on the stock, the analyst increased his target price from 315 pence to 335 pence.
Morgan Stanley also increased its 2020 earnings estimates by 8%, forecasting a total shareholder return of over 20% in 2018-2020, based on a 100%-dividend payout ratio.
After these comments, RBS shares were up 0.47% at 256.4 pence in afternoon trading on the London Stock Exchange, while the broader FTSE 100 index was trading down 0.4%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.