BUZZ-Paragon Group: second top midcap gainer on PT increases

** UK specialist lender Paragon Group of Companies up 3.5 pct & 2nd top FTSE midcap gainer

** Jefferies raises PT to 490p from 400p & FY17 EPS forecast +5 pct, RBC to 430p from 370p & EPS forecast +2 pct

** RBC says co being "one of the most over-capitalised UK banks" in uncertain markets + restructuring towards retail deposits provides co with cheaper funding source

** Co on Wednesday reports FY pretax profit +6.7 pct, helped by higher-margins on new business

** More than 30 pct of 30-day avg vols gone through

** 8 of 13 brokerages rate stock "buy" or higher, 3 "hold" and 2 "sell" or lower, acc to Reuters data (Reuters Messaging: pranav.kiran@thomsonreuters.com@reuters.net)