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CLOSE BROTHERS

P 27 Jan 959.5 970 965 960 955 24 Jan 26 Jan 23 Jan 25 Jan 27 Jan

Peel Hunt has downgraded Close Brothers and slashed its target price by 18 per cent after the London-listed merchant banking group posted a smaller than expected loan book and a weak securities performance. Close Brothers also revealed last week it would set aside an additional £90m to deal with bad loans from legal-finance specialist Novitas Loans, which it acquired in 2017.

DIRECT LINE INSURANCE

P 27 Jan 173.8 180 178 176 174 172 170 23 Jan 25 Jan 27 Jan 24 Jan 26 Jan

Direct Line Group is facing choppy waters after chief Penny James stepped down with immediate effect on Friday after the firm issued a second profit warning in recent weeks and scrapped its final dividend. Analysts at Peel Hunt have predicted the firm will bounce back however and said they "maintain [their] long-term positive view on the stock". They rate it a buy stock with a target price of 240p.

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