Investec keeps Barclays at 'buy' after SFO ruling

Analysts at Investec reiterated their 'buy' stance and target price on shares of Barclays after the Serious Fraud Office charged four former top executives for 'fraud' and the lender itself with two offences of conspiring to commit fraud and on one account of unlawful financial assistance.

Banks

4,726.97

17:09 18/11/24

0.93%

43.39

Barclays

260.85p

17:15 18/11/24

0.58%

1.50p

FTSE 100

8,109.32

16:35 18/11/24

n/a

FTSE 350

4,473.50

17:09 18/11/24

n/a

FTSE All-Share

4,431.13

16:49 18/11/24

n/a

Given the litigation uncertainties, analyst Ian Gordon said no provision could reasonably be assessed in the second quarter of 2016.

"We suspect that this saga could run for years," Gordon said.

Barclays had yet to see an indictmentor statement of facts, he said.

The SFO ruling also meant the stay on the Financial Conduct Authority's own investigation, which had been pending a ruling, was now lifted.

The lender was also facing a civil claim related to the controversial £7.0bn emergency fund-raising conducted by Barclays in 2008, which allowed it to sidestep the government's own Asset Protection Scheme and avoid the risk of being nationalised.

Gordon kept his target price at 245.0p.