Virgin Money (VUK) owns Clydesdale Bank and Yorkshire Bank in the UK as well as Virgin Money UK.
“Its share price was hit hard during Covid 19 and the resultant lockdowns,” said Julia.
“Banks are a leveraged play on economic activity. With vaccine rollouts taking place, recovery in economic activity and hence loan growth should be positive over the next 12-18 months.
“Additionally, loan loss provisions should be lower and drive a rebound in earnings.
“Virgin Money is leveraged to improving bond yields which should be in focus as economic recovery continues to take hold.
VUK has a strong capital position and still looks relatively cheap compared to its peers,” she explained.
Recommendation: BUY VUK
Source: Google
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