Market's view on Close Bros
Published on April 2024
- There are concerns about the financial impact of the FCA investigation on CBG, with divi cancellation and provisions hinting at expected sanctions.
- Expectations are set for the FCA to make an announcement by September.
- Interest in CBG’s stock could rise sharply if it surpasses £5.
- Multiple instances of director purchases are noted, indicating possible insider confidence.
- Anticipation for Lloyds’ quarterly results as it might provide more insights into the FCA enquiry.
- Speculation exists about constant Fed policies on interest rates and the corresponding Bank of England’s stance.
- Peel Hunt has reduced the target price for CBG from 518p to 500p amidst financial uncertainties.
- Concerns are discussed about CBG needing to reserve significant funds, possibly around £350m, for compensation related to the FCA’s findings.
- CBG’s previous issues, including a costly venture into Novitas and underperformance in their Winterflood division, are highlighted.
- Brokers have been restricted by CBG from increasing interest rates charged to customers since 2016, enhancing the company’s compliance posture.