Barclays: shares rise on broker upgrade
(CercleFinance.com) - Barclays shares are up 1.
2% this morning after broker Berenberg upgraded the British bank from "hold" to "buy".
While acknowledging concerns about Barclays' investment banking strategy, which have driven a 15% fall in the shares year-to-date, the German broker says that the market's expectation of a 5.5% return on tangible equity (RoTE) from Barclays' investment bank is too low.
In a note, Berenberg says that the bank "has the strongest franchise of any non-US bank in the profitable US investment bank market and is gaining market share."
It has also raised its target price from 200 pence to 220 pence.
The Barclays stock is currently up 1.2% at 173.9 pence in London.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
2% this morning after broker Berenberg upgraded the British bank from "hold" to "buy".
While acknowledging concerns about Barclays' investment banking strategy, which have driven a 15% fall in the shares year-to-date, the German broker says that the market's expectation of a 5.5% return on tangible equity (RoTE) from Barclays' investment bank is too low.
In a note, Berenberg says that the bank "has the strongest franchise of any non-US bank in the profitable US investment bank market and is gaining market share."
It has also raised its target price from 200 pence to 220 pence.
The Barclays stock is currently up 1.2% at 173.9 pence in London.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.