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Lloyds Banking Group PLC (LON:LLOY), Barclays PLC (LON:BARC) and Virgin Money UK PLC (LON:WMUK) shares are all ‘buys’ for UBS as the European banking sector, particularly the UK’s, is seen as significantly undervalued compared to the rest of the market. UK domestic banks trade at a 14% discount to the European banks sector, which itself trades at a 42% discount to the European stock market, UBS pointed out.
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