Barclays backs challenger banks

Barclays has upgraded specialist lenders Aldermore (LON:ALD) and OneSavings Bank (LON:OSB) to 'overweight' from 'equal weight'.

Price targets were lifted to 200 pence (from 150 pence) and 340 pence (from 235 pence), respectively.

Barclays said: "UK challenger banks remain geared plays on the macro, in our view. However, high profitability, comfortable capital ratios and low valuation multiples should provide significant insulation."

At 2:42pm:

(LON:ALD) Aldermore Group PLC share price was +3.15p at 178.75p

(LON:OSB) Onesavings Bank share price was +17.35p at 286.05p