MARKET TALK: RBS Initiates Coverage Of Paragon At Buy

10th Jun 2010 07:52

0652 GMT [Dow Jones] Royal Bank of Scotland initiates coverage of Paragon Group (PAG.LN) at buy with a 200p price target. RBS says the 1H '10 results underline the quality of the loan portfolio. It thinks the group looks in a strong position financially and the loan portfolio continues to perform well, with arrears rates well below the market average. A return to lending in any material way looks to be much closer to becoming a reality, says RBS, adding that management has given the strongest message yet that it is close to accessing a warehouse facility, which would in turn allow Paragon to tap the securitization markets. Shares closed Wednesday at 130.8p.([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 10, 2010 02:52 ET (06:52 GMT)