1108 GMT - Metro Bank could struggle to meet its ambitious midterm plan, Keefe, Bruyette & Woods says in a research note. The U.K. challenger bank targets market-leading profitability by 2027. "Achievement of these goals is still demanding--requiring consistent double-digit new business volume growth at the same time as expanding margins and maintaining credit quality," analysts Edward Firth and Elise Yu Ge write. This isn't impossible but at current valuation levels the shares don't feel cheap for the associated risks, they note, adding that similar multiples are available at U.K. peers already making double-digit returns. Shares trade at 90 pence and are down 4.2% since the start of the year. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
March 25, 2025 07:09 ET (11:09 GMT)
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