We reiterate Buy on PCF and revise forecasts following the recent £10.75m (gross) capital raise. We see 58% TSR potential on a one-year view after reducing our target price to 55p (from 60p) to reflect a valuation methodology change. Partially reflecting its size, we are confident that PCF can continue to deliver amongst the highest EPS and TNAV growth rates of UK lenders. At 1.5x estimated current year tangible book for a c.17% RoTE in 2021E, we think PCF is undervalued, and given its
27 Mar 2019
Capital raise supports growth ambitions
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Capital raise supports growth ambitions
PCF Group plc (RLW:FRA) | 0 0 0.0% | Mkt Cap: 55.1m
- Published:
27 Mar 2019 -
Author:
Vivek Raja -
Pages:
15
We reiterate Buy on PCF and revise forecasts following the recent £10.75m (gross) capital raise. We see 58% TSR potential on a one-year view after reducing our target price to 55p (from 60p) to reflect a valuation methodology change. Partially reflecting its size, we are confident that PCF can continue to deliver amongst the highest EPS and TNAV growth rates of UK lenders. At 1.5x estimated current year tangible book for a c.17% RoTE in 2021E, we think PCF is undervalued, and given its