Initiation of coverage: best efforts undermined by uncertain economic outlook

  • Sectors : Banks
  • Companies : RBS

Ratings and price correct at time of issue.

  • RBS

    Closing Price: 239p

  • RATING 11/02/19



RBS should enter 2019 with welcome clarity regarding its investment case and go-forward momentum following further restructuring progress, efficiency gains as well as a resolution to the most significant legacy factors. Despite best efforts, this clarity is undermined by the uncertain economic outlook. We initiate coverage with a ‘Neutral’ rating and a price target of 285p. In the event that a favourable resolution to the current uncertain political and economic backdrop emerges (i.e. a smooth EU exit that looks difficult to achieve at present), we view RBS as comparably well-placed among UK banks.

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Feb 11 2019, 07:10 GMT