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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
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Banks

Barclays downgraded ahead of results on investment bank concerns

Barclays has received an earnings downgrade from broker Shore Capital ahead of its full-year results on 20 February.

The broker has kept its 'buy' recommendation but chopped its earnings and dividend expectations by 9% to 27.2p and 8.2p respectively.

A likely challenging quarter for the investment bank arm is one of the reasons for the downgrade with tough comparisons and a very little capital market activity.

On the plus side, the trends for deposit migration and bad debts have been better than expected.

Barclays has also said it will announce the outcome of a strategic review alongside the results, with more cost cutting already flagged in press reports though Barclays said it will not be the start of a major restructuring.

That implies the investment bank is staying put, for now anyway.

ShoreCap has a fair value estimate of 290p, which it says is 106% upside hence the 'buy' rating.

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