CSFB expects Northern Rock's price to hit 925p.Mortgage bank Northern Rock has been given another boost by a City investment house. The Newcastle-based bank, which reported record lending levels and profits up 22pc earlier this month, has had its price target raised by Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. (CSFB CSFB Credit Suisse First Boston CSFB Cyclically Shifted Filter Bank ). In a note, the investment bank increased its target for Northern Rock shares from 890p to 925p and held an `outperform' recommendation. CSFB also raised its forecast for the Rock's 2004 pre-tax profit by 2pc to pounds 405m. The Newcastle bank reported half-year profits of pounds 186.2m to the end of June. The note from CSFB said: "We believe the stock is significantly undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. , consensus forecasts for 2004 are too low and the group's targets on both asset under management growth and profit growth are credible." Northern Rock has said it aims to grow assets by 20pc a year. Shares in the bank ended up 10p yesterday at 717p. |
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