Barclays has been named a top banking-sector pick by UBS, which reckons the shares are too cheap to ignore even as rivals flag a softer third quarter.
UBS, the Swiss bank, kept its buy rating on Barclays, the UK banking group, and set a 12-month price target of 600p.
That points to about 28% upside from the 470p close on 15 September, or a total return of roughly 31% with dividends.
Analysts Jason Napier and Sanjena Dadawala said the bank was too cheap and growing profits too fast to ignore.
The stock trades on 7.2 times forecast 2027 earnings, against 13.9 at Goldman Sachs, 14.2 at JP Morgan and 15 at Morgan Stanley.
The note landed as American banks gave mixed guidance on trading and dealmaking.
Bank of America pointed to flat sales and trading revenues and investment banking fees of $1.6 billion to $1.8 billion, down about 17% year on year.
Citigroup guided to mid-single-digit growth in markets revenue, while JP Morgan expected trading and banking income up by the mid-to-high teens.
Barclays, in line with its usual practice, gave no third-quarter trading update.
UBS argued the bank was less exposed to quarter-to-quarter swings in investment banking than its share price suggested.
It also flagged Barclays' plan to spend £600 million to £650 million more in the second half than the first on measures to lower future costs.
Those steps could hand it a cushion of up to £1 billion against 2027 profit if investment banking income cools, UBS said.
