Barclays PLC's (LSE:BARC) full-year results have prompted upbeat reactions from analysts, with Deutsche Bank and Keefe, Bruyette & Woods both maintaining their positive outlooks, albeit with different price targets.
KBW raised its price target to 380p, noting that the bank delivered a solid set of fourth-quarter results, with profits ahead of expectations.
While management’s guidance on banking net interest income for 2025 appeared cautious, the firm believes Barclays is being overly conservative.
It expects stronger revenue from its UK banking operations and corporate and investment banking unit, leading to higher earnings forecasts for the next three years.
Despite the stock doubling in value over the past year, KBW feels that Barclays is still attractively priced, particularly in a falling interest rate environment.
Deutsche also remains confident in the UK lender's prospects, keeping its price target at 350p and reiterating that the stock is one of its top picks among European banks.
The firm expects the bank to build on its 2024 return on tangible equity and push beyond 12% in 2026.
A key driver is the bank’s structural interest rate hedge, which is expected to reprice favourably.
Deutsche Bank also sees potential in Barclays’ efforts to expand market share in corporate and investment banking and improve margins in its United States consumer business. Even if these goals are not fully realised, the analysts argue that the stock remains undervalued.
Both firms see Barclays as well-positioned for the years ahead.
While some investors were disappointed by cautious guidance for 2025, analysts believe the bank has set itself up for continued growth. The outlook remains positive, with strong shareholder returns and a clear path to higher profitability.
In late morning trading, the stock was off 1.65p at 302.1p.