Ann: Dividend/Distribution - VUK, page-14

nice write up below but still likely to fall a bit on thursday in OZ .

: Virgin Money ‘materially undervalued’There may be macro uncertainties but Virgin Money (VMUK) has beaten estimates and continues to be ‘materially undervalued’, says Liberum.Analyst Shailesh Raikundlia retained his ‘buy’ recommendation and target price of 260p on the stock, which closed down 1.1% at 148p on Tuesday. ‘While management portrayed a cautious outlook due to the current economic and geopolitical uncertainties, the fact remains that half year 2022 underlying profit before tax of £388m beat estimates by 16% and upgrading of net interest margin guidance to 180-185 basis points, will lead to consensus upgrades for full year 2022 and beyond,’ he said.Despite inflationary pressures, costs are expected to remain stable this year, and although Raikundlia said he had reduced his loan growth assumptions, this is ‘more than offset by the increase in net interest margin, resulting in our estimates increasing for each of the next three years’.‘We think Virgin Money is materially undervalued,’ he added.