S&U PLC (LSE:SUS) has reported it is still being affected by the FCA not yet concluding its Borrowers in Financial Difficulty review of Advantage motor finance.
There remain significant uncertainties regarding in particular the outlook for collections whilst the FCA review remains ongoing and whether there might be some need for remediation.
Peel Hunt notes that its projections already assume lower collections and it will adjust estimates at the time of the interim results scheduled for 8th October.
Pending the finalisation of the FCA review, 'hold' is the broker’s recommendation, though it notes that there is significant potential upside for S&U shares when regulatory uncertainty is lifted.
Peel Hunt’s target price remains 2,280p against an unchanged 1,885p in the market.