Paragon Banking Share Discussion Threads

[mechanical trader] 18/2/2014 14:28

Paragon Group of Companies PLC PT Raised to GBX 453 at Canaccord Genuity (PAG)
Posted by Wayne Rhoads on Feb 18th, 2014

Paragon Group of Companies PLC logoAnalysts at Canaccord Genuity upped their price objective on shares of Paragon Group of Companies PLC (LON:PAG) from GBX 420 ($7.04) to GBX 453 ($7.59) in a research report issued to clients and investors on Tuesday, Analyst Ratings Net reports. The firm currently has a "buy" rating on the stock. Canaccord Genuity's target price points to a potential upside of 23.30% from the stock's previous close.
PAG has been the subject of a number of other recent research reports. Analysts at Espirito Santo Investment Bank Research reiterated a "buy" rating on shares of Paragon Group of Companies PLC in a research note on Thursday, February 13th. They now have a GBX 481 ($8.06) price target on the stock, up previously from GBX 424 ($7.11). Separately, analysts at UBS AG raised their price target on shares of Paragon Group of Companies PLC from GBX 325 ($5.45) to GBX 350 ($5.87) in a research note on Monday, February 3rd. They now have a "neutral" rating on the stock. Finally, analysts at JPMorgan Chase & Co. reiterated an "overweight" rating on shares of Paragon Group of Companies PLC in a research note on Monday, February 3rd. They now have a GBX 396 ($6.64) price target on the stock. One investment analyst has rated the stock with a sell rating, three have given a hold rating and nine have assigned a buy rating to the company's stock. The company currently has an average rating of "Buy" and an average price target of GBX 381.17 ($6.39).
The Paragon Group of Companies PLC is an United Kingdom-based holding company, engaged in the first mortgage and consumer finance businesses.

[peterclo] 18/2/2014 10:26

They mentioned they were applying for a banking license in the IMS, the volume through today suggests it wasn't priced in. Fingers crossed it holds the breakout, sounds like a decent catalyst for more growth. imo etc

[prestigen] 31/1/2014 15:12

Thanks for the update CR re broker coverage. Shame about the overall market today...

[cockneyrebel] 31/1/2014 11:48

Canacord Buy - 420p target.

Panmure, P.Hunt, Shore and Westhouse should be out later today or Mon imo - they all have buy recs.

CR

[cockneyrebel] 31/1/2014 11:28

Agree - class act imo.

Broker notes likely on Monday imo and should get positive coverage re the banking subsidiary. Cars are selling like hot cakes at the moment so there's huge business out there for them.

"utlook
As we reported at the year-end, the Group has applied to the Prudential Regulation Authority and the Financial Conduct Authority for authorisation to establish a banking subsidiary which will take deposits and make, initially, car and second mortgage loans, with other product lines to be established in due course. The application process and operational preparations are well advanced and, subject to regulatory approval, we expect to launch the bank during the current quarter of 2014. Further information will be provided in due course.
During the period, the Group's loan portfolio has performed well, new buy-to-let lending has increased significantly and Idem has made significant further investments in loan portfolios as well as increasing its servicing of third party loans. The Group will continue to pursue the strategy of prudent management of its portfolios, whilst seeking growth through new buy-to-let and, in due course, consumer finance originations and through portfolio acquisitions."

All imo/dyor etc

CR

[the drewster] 31/1/2014 10:27

Should see incremental dividend policy maintained too.

I bet Nigel felt good buying HQ back, and if memory serves, for less than they sold it for a while back?

Impressive Mr T, very impressive.

[prestigen] 31/1/2014 10:04

Quality business CR, confirmed by today's statement. Solid fundamentals, good cash generation and forward thinking strong management too. A great history of consistently delivering which is very reassuring. All that and still on a low PE, a combination I like! Long term happy holder!

[prestigen] 31/1/2014 10:04

Quality business CR, confirmed by today's statement. Solid fundamentals, good cash generation and forward thinking strong management too. A great history of consistently delivering which is very reassuring. All that and still on a low PE, a combination I like! Long term happy holder!

[the drewster] 31/1/2014 10:02

Didn't realise they had bought back the HQ - I remember them doing a sale and leaseback on the very same building many moons ago!

[cockneyrebel] 31/1/2014 08:19

banking news will take these to nice new highs imo.

All the trading news looks excellent to and not paying rent on their property now they've bought it too.

All imo/dyor etc.

A decent PE here too imo.

CR

[cockneyrebel] 31/1/2014 07:49

Looks rather good imo and confirmation the backing division likely to start in Q1 :-)

All imo/dyor etc.

CR

[prestigen] 31/1/2014 07:46

IMS Today:

"The financial performance of the Group remained strong during the period to 31 December 2013, in line with management's expectations, generating operating profits (before fair value items) of £26.9 million, compared with £23.7 million for the corresponding period in the previous year, a 13.5% increase. Pre-tax profits, after a credit of £0.2 million for fair value hedging items, were £27.1 million for the period. "

All looks very good to me indeed!

[prestigen] 30/1/2014 16:58

I have next week sometime pencilled in sometime CR. Uptrend seems very much in tact to me.

[the drewster] 30/1/2014 15:46

potential H&S forming which could test 300p ... a trading statement would override though and set the new short term direction.

[cockneyrebel] 30/1/2014 15:40

Trading statement imminent.

CR

[prestigen] 23/1/2014 08:31

Nigel Terrington, Chief Executive of Paragon, commented:

"We are delighted with the success of our second retail bond. We have received a very positive response from investors demonstrating the attractiveness of Paragon and the growth opportunities for our business. This bond complements our already strong balance sheet, allows us to diversify our funding base and extend the tenor of our debt maturities."

[prestigen] 23/1/2014 08:31

Nigel Terrington, Chief Executive of Paragon, commented:

"We are delighted with the success of our second retail bond. We have received a very positive response from investors demonstrating the attractiveness of Paragon and the growth opportunities for our business. This bond complements our already strong balance sheet, allows us to diversify our funding base and extend the tenor of our debt maturities."

[wirralowl] 16/1/2014 20:52

Positive review from Fixed Income Investor's Oliver Butt, regarding the company's latest bond issue:

hxxp://www.fixedincomeinvestor.co.uk/x/analysis.html?type=bond-of-the-week&cat=analysis-comment&y=2014&aid=1216

Conclusion. Paragon's business is very straight forward and easy to understand. I definitely like it from a credit perspective. We have advanced one year further from the depth of the financial crisis since the last ORB issue and the housing market appears to be in good (maybe too good) health and therefore you would have to say that if anything the credit has improved from last time. As to value, in last week's Bond of the Week I said I would like a coupon of 6 1/8% and they have provided it. However, that was for a two year extension against the old issue not the 13 month extension we have. Using the pre-announcement price of the old issue I make it that Paragon 6 1/8% offers a 25 bp pick up against the curve. Throw in that 8 year Gilt yields are off 10 basis points since I wrote my piece and they have done us proud. If we go on to add in to the mix that no other ORB bond is offered below par and this is the highest yielding bond on the ORB I have to definitely recommend this issue. The old issue, Paragon 6% 2020, has sold off post the announcement of the new issue but I would still recommend the 6 1/8% 2022. I would expect a good premium in time, subject to stability in the Gilt market, even if you may not get the mega performance sometimes offered by inaugural issuers. I also think a 6 1/8% gives sufficient protection against any foreseeable rises in interest rates. If you have money to go into the fixed income market I would buy this issue.

[ngopal] 08/1/2014 08:31

Just a bit of adjustment going on in the market I suspect Drewster with it being ex-div today. May have knocked out some tight stops with holders who hadn't realised. Seemed settled now.

[the drewster] 08/1/2014 08:23

Marked down 15p early doors - did someone get mugged?!

[yam114] 07/1/2014 19:24

That's nice I hadn't noticed.

[simon42] 07/1/2014 19:15

Ex div 4.8p tomorrow 8th Jan

[woodcutter] 23/12/2013 20:58

Nice chart!

[simon42] 23/12/2013 16:35

New highs! ;-)