KBW analysts remain optimistic about Barclays PLC (LSE:BARC) following “a strong set” of second-quarter results published last week.
"We continue to like Barclays which remains materially undervalued against peers,” said KBW, although noting Barclays’ higher cost of equity given its investment banking focus.
KBW raised its Barclays share price target from 240p to 300p, reflecting a sustainable return on tangible equity (ROTE) of 11%.
KBW also forecasts strong cash returns, with dividends and buybacks projected to generate a total cash return yield of 21% for financial 2024 to 2025.
Barclays shares were swapping for 216.65p on Friday afternoon.