June 27, 2019 / 9:51 AM / 8 months ago

BUZZ-Metro Bank "fighting back", says Investec after upgrading to 'buy'

** Shares of British challenger bank Metro Bank were up 6.2% at 527.5 pence, top of FTSE midcap index

** Investec upgrades stock to “buy” from “hold”, but cuts PT to 580 pence from 620 pence

** Metro completed its 375 mln pound capital raise earlier this month, thereby raising its pro forma Q1 2019 CET1 capital ratio to a “robust” 15.8%, Investec says

** “Given its slower and less capital intensive growth plans, we continue to believe that this (fundraising) should prove sufficient to support planned growth through to 2021 before fresh capital is required” - Investec

** Shares down 68.8% YTD; Co disclosed in January it had under-reported the risk on its loan book, which hit its capital and shares, and put its management under pressure

** The bank’s loan book error had wiped out more than 1.5 billion pounds off its market value and forced it into an early fundraising to repair its balance sheet (Reporting by Justin George Varghese in Bengaluru)

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