Prices & Quotes - UK Markets - Paragon Banking Group (PAG)

LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity hiked their target price on diversified financials group Paragon from 454.0p to 548.0p on Monday, pointing to the company's "exemplary track record" in terms of asset quality and operating performance throughout economic cycles.
Canaccord, which also reiterated its 'buy' rating on the stock, stated Paragon's 2020 full-year results were illustrative of its historical performance and said while economic uncertainty remained "in the short term", it believes its outer year forecasts could be conservative in terms of new lending and net interest margin.

"Our previous forecasts were very cautiously struck under a severe economic scenario, which to date has not materialised due to ongoing government support measures for individuals and businesses," said the analysts, who upgraded their earnings per share forecasts for Paragon by 18% and 9% in 2021 and 2022, respectively.

The Canadian broker highlighted potential upside risk to its outer year return on tangible equity forecast of 12.4%, noting that Paragon's medium-term target remained 15%.