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Investing.com - RBC Capital upgraded Metro Bank Plc (LON:MTRO) (OTC:MBNKF) from Sector Perform to Outperform while maintaining its price target of GBP1.55.
The upgrade comes as RBC Capital introduced fiscal year 2028 estimates for the bank, projecting an 18.2% return on tangible equity (ROTE) at that time.
RBC Capital described this projected return as "progressive and attractive," while noting that its assumptions remain conservative relative to management guidance.
The firm’s updated estimates include an expectation that Metro Bank will begin paying a small dividend starting in fiscal year 2027.
RBC Capital characterized the anticipated dividend initiation as "an important sentimental development" for the bank.
In other recent news, Aveanna Healthcare Holdings Inc. announced its second-quarter 2025 financial results, which significantly outperformed market expectations. The company reported earnings per share of $0.18, a notable increase from the forecasted $0.04, and revenue of $590 million, surpassing projections of $533.92 million. This strong performance has drawn attention from analysts, leading to upgrades in the company’s stock rating. UBS upgraded Aveanna Healthcare from Sell to Neutral, citing improved visibility on the company’s leverage trajectory and a better understanding of its interest rate swaps and caps. Additionally, Raymond (NSE:RYMD) James upgraded the stock from Market Perform to Outperform, setting a price target of $9.00. This upgrade was influenced by Aveanna’s second-quarter results, which exceeded both company guidance and consensus forecasts. These recent developments highlight a positive shift in analyst sentiment toward Aveanna Healthcare.
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