Deutsche Bank raises target price on Barclays

Analysts at Deutsche Bank raised their target price on Barclays from 180.0p to 200.0p on Friday, stating that the lower UK income outlined by the bank recently "should have been expected".

Barclays said it was "not surprised" by Barclays' guidance for significant net interest margin reduction in the UK given the first-quarter lockdown and stated in fact, guidance for a roughly 240 basis point net interest margin was actually "slightly better" than its original 235bps expectation.

The German bank increased its revenue estimates for Barclays by roughly 1%, primarily due to "a strong start to the year" in investment banking, which increased its pre-provision profit forecast by 2-4%.

"Our 2022/23 EPS estimates increase by 6% reflecting the additional benefit of buying back more shares below book value than we previously expected," added Deutsche's analysts, who also stood by their 'buy' rating non the stock.