Shares in FTSE 250 lender Close Brothers experienced a surge on Thursday morning, contrasting with the downward trend of banking rivals HSBC, Barclays and Standard Chartered.
The lender saw gains peak at ten per cent during early trading before settling around five percent, as it began to recover from recent losses, as reported by .
In contrast, Standard Chartered led the FTSE 100's losses, dropping nearly 10 per cent, while Barclays and HSBC fell by close to seven per cent and over six per cent respectively.
Close Brothers' stock has been under pressure over the past six months due to its involvement in the car mis-selling scandal.
This week, the saga moved to the Supreme Court, where Close Brothers is attempting to overturn an October ruling by the Court of Appeal.
The ruling deemed it unlawful for banks to pay commission to a car dealer without the customer's informed consent.
Following the verdict, Close Brothers' shares plunged almost 25 per cent and have remained unstable since.
The Supreme Court's judgement could take several months, but the Financial Conduct Authority has stated it will confirm an industry-wide redress scheme within six weeks if the banks receive an unfavourable verdict.
As the Supreme Court hearing commenced on Tuesday, the stock experienced fluctuations throughout the day. Peel Hunt rated the stock a 'hold' in a note issued on April 1, setting a target price of 277.20p.
However, following Thursday's gains, Close Brothers surpassed the analyst's target, reaching highs of 310p.
Analysts have revised their forecast for Close Brothers' full-year earnings per share, reducing it by 15% to 50.6p.
Their guidance on the lender's full-year net interest margin – a key banking indicator of the difference between the rates at which a bank borrows and lends – has also been cut to 7%, with an anticipation that it will drop further to 6.7% in the second half.
RBC Capital Markets adjusted their target price for Close Brothers down to 340p from 360p according to a note issued last week, yet they maintained an 'Outperform' rating. This suggests that they anticipate the company's shares to "materially outperform sector average over 12 months."
Nonetheless, analysts placed the label 'Speculative Risk' on the stock, recognising the prevailing uncertainty surrounding its motor finance case.
