Close Brothers Group PLC (LSE:CBG) shares have rallied on the back news that the Supreme Court will review the decision against the lender in the landmark Hopcraft motor finance case, but Panmure Liberum thinks little has changed in reality.
“While this is marginally positive given it eliminates the small risk that the appeal would not be heard, the controversy and potential widespread ramifications around the initial ruling from the Court of Appeals meant the Supreme Court only really had one option when deciding whether the hear the case.”
The broker adds that uncertainty will continue to cloud Close’s shares and – to a lesser extent Vanquis, another specialist lender, – “as the timeline remains unknown while we await the ruling from the Supreme Court and potential redress scheme from the FCA”.
Hold remains its rating on Close Bros (target 530p) and buy on Vanquis (75p target), says the broker.