Investors are warming to Barclays PLC (LSE:BARC), according to broker Berenberg, with its investment bank targets seen as challenging but achievable.
“More broadly, we believe that investors are reassured by Barclays’ strong initial strategic progress and by emerging signs of UK growth and margin support,” said the broker.
“The flexibility of capital allocation and expenses in Barclays’ strategy can also act as a mitigant if income growth is weaker than expected. These qualities remain undervalued.
“The bank’s granular guidance and plan to distribute at least £10bn of capital by FY 2026 provide a transparent commitment, and are helping to demystify the drivers of Barclays’ returns.”
Buy with a 280p price target is Berenberg’s view.