Last week, equity analysts, Berenberg Bank restated its buy rating in a research note published on Thursday, according to Fairfield Current.
In addition, Morgan Stanley has raised its target price from 315 GBX to 335 GBX following the Royal Bank of Scotland’s recent decision to resume dividend payments, with Berenberg Bank going higher and setting its target price at 340 GBX. The raises come following Citi’s change in recommendation from ‘hold’ to ‘buy’ last week.
LON: RBS shares currently stand at 245.80 points, up 0.69% per cent at 11.08 BST, while the UK benchmark index is up 0.39 per cent at 7607.32 points.
The company has suffered from multiple losses this year, most notable of which have been the mis-sold mortgage securities which resulted in a $4.9-billion settlement with the US department of justice and the company’s decision to shift branch ownership from European branches to its Irish bank, as early preparation for the country’s exit from the EU. Both of which saw LON:RBS share prices drop by almost 2%, with the total loss over 12 months being 3%.
RBS set to enjoy continued buoyancy on the FTSE 100 market
RBS’s dividend yield for 2018 is 2.7% and brokers are now forecasting an increased dividend yield of 5% in 2019 and an estimated operating profit £2,627m for the first half of the financial year. CEO Ross McEwan states: "Over time we expect to build a regular dividend pay-out ratio in the order of 40%”, as reported in CNBC.
New interim CFO Katie Murray expected to maintain momentum
Last week, RBS announced Katie Murray as its new interim CFO, replacing Ewan Stevenson. According to an article in the Financial Times, Murray is well regarded internally and has featured in some big projects for RBS, it remains to be seen if she will permanently replace Stevenson.