Berenberg stays at 'buy' on Barclays, trims target price
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Barclays
208.90p
16:40 28/06/24
Analysts at Berenberg stood by their 'buy' recommendation on shares of Barclays.
Banks
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17:14 28/06/24
FTSE 100
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17:10 28/06/24
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16:54 28/06/24
In their opinion, investors craved greater consistency in the lender's returns.
Nonetheless, they were in effect being paid to wait.
Since the 2021 financial year, Barclays had achieved a return on tangible equity in excess of 10% and of 13.2% in the first half of 2023.
But its shares were changing hands at just 0.5 times their tangible book value and fell 5% on the back of its latest results, due to weaker-than-expected revenues.
On the other side of the ledger, they believed that Barclays's returns would be supported by a long-term net interest income tailwind, cyclically stronger investment banking activity and robust asset quality.
"Considering a c6% annual dividend yield and c5% buybacks, investors are increasingly being paid to wait while Barclays demonstrates greater RoTE consistency," they said.
Berenberg did however trim its target price on the shares from 270.0p to 260.0p.