Close Brothers upgraded to buy as broker calls Viceroy sell-off overdone

Shore Capital sets 490p target price, implying 42% upside, as it argues short-seller's motor finance redress scenarios are materially exaggerated Shares in Close Brothers Group PLC (LSE:CBG), the FTSE 250 specialist lender, have fallen sharply after a critical report from Viceroy Research argued the company had understated its liabilities from motor finance commission arrangements, but Shore Capital has responded by upgrading the stock to 'buy', arguing the selloff has gone too far. Close Brothers' management has firmly rejected Viceroy's claims, saying the analysis rests on exaggerated and unfounded assumptions, and Shore sided with that view, cutting its target price to 490p from 510p while concluding that the shares now more than compensate investors for any residual regulatory uncertainty.