Shawbrook Group Shares (LON:SHAW) Rise as Analysts Set Lofty Price Targets

Shawbrook Group shares (LON: SHAW) have been given a boost today from the analyst community, climbing 2.55% following the initiation of coverage by several respected names.

The market reacted favorably to Deutsche Bank initiating coverage with a ‘Buy' rating and a price target of 610p, a very healthy perceived upside on the 441.8p price the shares are trading at today. Deutsche Bank's assessment highlighted Shawbrook's position as the fastest-growing bank in the UK, a factor that likely contributed to the increased buying pressure.

Adding to the positive momentum, Barclays also initiated coverage with a bullish ‘Overweight' rating and a 520p price target. Barclays analysts view Shawbrook as a unique entity within the UK financials sector, emphasizing its high growth and profitability as a specialist digital lender.

Goldman Sachs initiated coverage with a ‘Neutral' rating and a 500p price target, acknowledging Shawbrook's high returns and growth potential but also pointing out potential risks from increased competition and asset quality concerns, suggesting the current valuation is fair.

Shawbrook's return to the public markets in October 2025 via an IPO, priced at 370 pence per share and valuing the company at approximately £1.92 billion, saw a strong debut, closing at 395 pence on its first day, a 6.8% increase.

This successful listing, the largest UK-based company IPO on the LSE in two years, demonstrated significant investor interest in the company's prospects. The company's loan book has also seen substantial expansion, growing by 14.6% to reach £18.25 billion by November. This growth was partly fueled by the acquisition of ThinCats, enhancing Shawbrook's SME lending capabilities.

The company anticipates mid-to-high teens profit growth in the medium term and plans to pay its first dividend in 2026.