March 27, 2019 / 7:15 AM / 3 months ago

BUZZ-Metro Bank: Morgan Stanley says "no quick fixes", slashes PT

** Morgan Stanley cuts Metro Bank’s PT by over 30 pct to 920p; shares of the crisis-hit lender closed at 828p on Tuesday

** Metro Bank’s equity story now faces a series of challenges: raising 350 million pounds in capital, paring back growth and restoring confidence - Morgan Stanley

** “There are no quick fixes, with the model under pressure to deliver “ - Morgan Stanley

** “The equity raise is just the first step; management will need to steer the model through the transition to lower growth and greater cost control,” the brokerage adds

** Metro Bank shares, which have fallen over 50 pct so far this year, closed at 828p on Tuesday; fallen about 77 pct in the last 12 months

** As of Feb 27, five of 12 brokerages rate the stock “sell” or lower, 5 “hold” and 2 “buy” or higher; their median PT is 1,350 pence

** A major accounting blunder triggered a hefty investor cash call in late February, which was followed by Metro Bank Chief Executive Craig Donaldson offering to resign (Reporting By Justin George Varghese in Bengaluru; RM: justin.varghese.thomsonreuters.com@reuters.net)

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