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Close Brothers Wins Supreme Court Appeal in ‘Hopcraft’ Case

Story Highlights
  • Close Brothers overturned a judgment in the ‘Hopcraft’ case, clarifying legal principles.
  • The company maintains strong liquidity and capital position amid ongoing assessments.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Close Brothers Wins Supreme Court Appeal in ‘Hopcraft’ Case

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The latest update is out from Close Brothers Group ( (GB:CBG) ).

Close Brothers Group plc successfully overturned a previous Court of Appeal judgment in the ‘Hopcraft’ motor finance commissions case, as the Supreme Court ruled that motor dealers do not owe fiduciary duties to customers. This decision provides clarity on legal and commercial principles, although uncertainty remains regarding the potential financial impact on the group pending the Financial Conduct Authority’s decision on a redress scheme. Close Brothers continues to focus on its strong client franchise, maintaining high levels of liquidity and a robust capital position, with a Common Equity Tier 1 capital ratio of 14.0%, expected to increase following the sale of Winterflood Securities.

The most recent analyst rating on (GB:CBG) stock is a Buy with a £4.63 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Spark’s Take on GB:CBG Stock

According to Spark, TipRanks’ AI Analyst, GB:CBG is a Neutral.

Close Brothers Group’s overall score reflects a blend of technical strength and strategic corporate events offset by financial and valuation challenges. The stock’s technical indicators and strategic corporate actions are the most significant positive factors, suggesting potential for future growth. However, financial performance and valuation concerns pose risks that need to be managed to sustain long-term investor confidence.

To see Spark’s full report on GB:CBG stock, click here.

More about Close Brothers Group

Close Brothers is a leading UK merchant banking group providing lending, deposit taking, and securities trading. The company employs approximately 3,000 people, primarily in the United Kingdom and Ireland, and is listed on the London Stock Exchange as a constituent of the FTSE 250.

YTD Price Performance: 68.42%

Average Trading Volume: 618,764

Technical Sentiment Signal: Sell

Current Market Cap: £591.9M

See more insights into CBG stock on TipRanks’ Stock Analysis page.

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