Investec: RBS offers value, but don't bank on rebound to 40p

Analysts at Investec Bank have warned investors RBS shares will not rocket back to highs seen last summer, as returns on equity continue to be constrained.

The group, which has RBS shares as a buy at the current price of 24.8p, said although there is around 20% upside from here, investors looking for a near doubling of their money should think again. RBS shares last traded over 40p in June, before the late summer sell-off sent them - and the wider market - hurtling back down to earth. In their latest note, Investec Bank analysts Ian Gordon and Arun Melmane said they expect the part-nationalised lender to see a small loss of around £26m when it reports its first quarter numbers next month. It has a target price of 30p for the shares, a...