STOCKS NEWS EUROPE-Paragon up; Arden bullish on outlook

Shares in Paragon Group of Companies (PARA.L) climb 6 percent as Arden Partners issues an upbeat note on the British mortgage lender, saying catalysts are immanent and the valuation is attractive, while repeating its "buy" rating.

The broker says in a note that the resumption of new lending is weeks away, with the companies first-half results due on May 18, and estimates that it could result in a return on equity of 17 percent, which is immediately accretive.

Arden Partners also says with limited competition, tenant demand remaining strong and landlords in a healthy position, Paragon in is well positioned to reap the rewards when lending recommences.

It says Paragon trades at a 35 percent discount to net asset value and at 11.0 times 2010 EPS.

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