Article By Laura Chesters
Tuesday 18 September 2012
Investec banking expert Ian Gordon has made sure he is crossed off George Osborne's Christmas list. In just two weeks, he has gone cold on majority state-owned bank Royal Bank of Scotland. He said it is time to sell RBS, and thinks punters would be better off switching to Barclays shares.
Earlier this month he slashed his recommendation to hold from buy, but now has said the "risk-reward is disproportionately skewed to the downside". He has issued a target share price of 245p and admitted "we have never regarded RBS as uninvestable" but said that now RBS trades at a small premium to the "profitable/defensive Barclays", he thinks this is "inappropriate", and it is time to ditch the stock. RBS lost another 4.6p and ended the day at 274.4p.
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