Credit Suisse ups target price for Barclays

Analysts at Credit Suisse bumped up their target price for Barclays's shares on the back of the positive impact from recent tax reforms in the States.

That, they said, meant the lender's return on tangible equity would be 0.7% and 0.8% higher in 2019 and 2020, at 9.6% and 9.9%, respectively, although headwinds from foreign exchange markets would knock 3% off the group's earnings per share growth.

Their estimates for growth in adjusted earnings per share from 2018 to 2020 thus saw a lift of 11%, 4% and 3%, respectively, and their target price from 230p to 240p.

With 17% left to their revised target price, they also reiterated their 'outperform' recommendation.

Higher interest rates might drive further revenue upside, they said, while cost savings could surprise positively.

Through to year-end 2020, the broker also lifted its estimates for the lender's common equity Tier 1 capiatl ratio by between six tenths of a percentage and a full point.

That was despite having increased their estimate for the charge arising from litigation with the US Department of Justice from £1.0bn to £1.5bn.