BUZZ-Paragon: top FTSE midcap gainer on robust Q1
** UK lender Paragon +3.1%, top FTSE midcap gainer and poised for biggest one-day rise since mid December
** Q1 PBT rises 12.3 pct. RBC (Other OTC: RBCI - news) says co has achieved 23.3 pct of broker's FY16 forecast. This compares to an average of 22.6 pct of FY revenue earned in Q1 in the past 3 yrs
** Underlying operating profits up 13.9 pct yoy at 35.2 mln stg (v Jefferies estimate of 34.2 mln stg)
** Buy-to-let lending pipeline up 43 pct at period end. Jefferies analysts view this as positive after a strong period of completions
** Co says its acquisition of asset finance business Five Arrows Leasing from Rothschild & Co (Frankfurt: 13F.F - news) has made its bank profitable on a monthly basis
** Co says recent fiscal and regulatory changes and proposals may soften the rate of growth for buy-to-let as time progresses, but demand for rental properties to remain strong
** Says no change in existing buy-to-let customer behaviour to date
** Says preparations for Internal Ratings Basis application underway
** "As we have stated previously, we readily concede that Paragon (LSE: 0NFG.L - news) faces a regulatory overhang, but we feel that it is well placed to move to IRB and that the private rented sector remains in structural growth," Jefferies says
(Reuters Messaging: noor.hussain.thomsonreuters.com@reuters.net)