FTSE Small Cap (SMX)

7,147.07
   
  • Change Today:
    -28.43
  • 52 Week High: 7,273.06
  • 52 Week Low: 5,966.71

RBC Capital Markets upgrades Metro Bank to 'outperform'

By Michele Maatouk

Date: Tuesday 19 Aug 2025

LONDON (ShareCast) - (Sharecast News) - RBC Capital Markets upgraded Metro Bank to 'outperform' from 'sector perform' on Tuesday and reiterated its 155p price target.
"We introduce our FY28 estimates, when we expect the bank will deliver a progressive and attractive return on tangible equity (18.2%), despite being conservative in our assumptions relative to management guidance," it said.

RBC's estimates now include that Metro will start to pay a small dividend from FY27, which it said was "an important sentimental development".

The bank noted that on a two-year-forward P/TBV basis, Metro is trading at 0.65x, a 0.34x discount versus UK peers, despite RBC's expectation that it will deliver a reported ROTE of about 16.1/18.5% in FY27/28E, respectively - versus UK peers' average of circa 140%.

"If we were to value MTRO off our FY28 estimates, it would imply a theoretical value of 190p," RBC said.

At 0910 BST, the shares were up 3.7% at 124.40p.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Price Data

Price 7,147.07
Change Today -28.43
% Change -0.40 %
29-Aug-25 Close 7,147.07

Top Risers

Price Change
RWA 159.00p +3.6%
HTG 334.00p +3.6%
MARS 38.80p +2.5%
RM. 101.00p +2.0%
SHRS 275.00p +1.9%
IGC 173.00p +1.8%
BOOT 234.00p +1.7%
TMIP 60.00p +1.7%
JCGI 268.50p +1.5%
BGCG 287.00p +1.4%

Top Fallers

Price Change
JSGI 0.000p -100.0%
HINT 0.000p -100.0%
SHI 10.60p -11.7%
MTRO 119.40p -6.6%
ASC 276.00p -5.2%
PHAR 21.40p -4.5%
THG 28.70p -3.9%
SDY 26.60p -3.8%
SERE 63.80p -3.6%
VID 49.70p -3.3%

Top of Page