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(Sharecast News) - Shore Capital maintained a 'buy' rating on Funding Circle on Tuesday after a "positive update" from the fintech group in which upgraded its full-year outlook.
Funding Circle said it now expects FY26 revenues of at least £275m, with profit margins of around 16%, ahead of previous guidance for revenues of more than £255m and pre-tax profits of more than £40m.
The FTSE 250-listed firm said positive trends highlighted at its half-year results had continued through September and October, with November also starting strongly.
Shore Capital said previous guidance from the company was "conservative" and it was already more optimistic than consensus forecasts, thus limiting the extent of upgrades to its own numbers. Nevertheless, the target price for the shares has been lifted to 255p from 245p.
"The update provides further evidence of strong operational execution against an uncertain macro backdrop, while the recent confirmation of Rob Straathof as Lisa Jacobs' successor as CEO has also removed another source of uncertainty. Consequently, we retain our BUY recommendation."
The stock was up 13.2% at 235.5p by 1504 GMT.
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