Analyst Alvaro Serrano from Morgan Stanley maintained a Buy rating on Barclays and keeping the price target at p510.00.
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Alvaro Serrano has given his Buy rating due to a combination of factors that highlight both operational strength and attractive valuation. Barclays delivered a solid profit performance, with pre-provision operating profit ahead of expectations on the back of better-than-forecast revenue in U.S. cards and investment banking, alongside resilient credit costs and a capital ratio that exceeded market estimates.
The bank’s new guidance targets a return on tangible equity above 14% by 2028, underpinned by mid‑single‑digit revenue growth, disciplined cost control that should push the cost/income ratio into the low‑50s, and sustained capital returns, including buybacks and higher dividends. Even with slightly softer U.K. net interest income guidance, Serrano believes stronger contributions from other segments and efficiency gains more than compensate, making the current valuation – around 1.1x tangible book for a mid‑teens ROTE profile – compelling for investors.
According to TipRanks, Serrano is a 4-star analyst with an average return of 8.2% and a 54.97% success rate. Serrano covers the Financial sector, focusing on stocks such as Unicaja Banco SA, Banco Bilbao Vizcaya Argentaria, and Intesa Sanpaolo SpA.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a p530.00 price target.