Analyst Perlie Mong from Bank of America Securities reiterated a Buy rating on Barclays and increased the price target to p485.00 from p450.00.
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Perlie Mong’s rating is based on Barclays’ promising financial outlook and strategic initiatives. The bank is projected to achieve a 14% return on tangible equity (ROTE) by 2028, which is expected to be realized by 2025. This target is significant as it positions Barclays to close the valuation gap with its peers, who are trading at higher price-to-tangible book value ratios for similar ROTE levels.
Barclays’ strategic focus on capital allocation, cost control, and efficiency improvements in its investment banking operations is yielding positive results. Additionally, the bank’s management plans to return substantial capital to shareholders, with an anticipated distribution of approximately £11 billion in 2027-2028. This commitment to capital returns, coupled with the stabilization of its US consumer business, supports the Buy rating as it indicates potential for further upside in shareholder value.
In another report released on October 29, Goldman Sachs also maintained a Buy rating on the stock with a p445.00 price target.