Barclays PLC (LSE:BARC) is to expected to see a boost from new share buybacks which may be announced alongside the bank’s fourth quarter results, according to analysts at Jefferies.
In a note to clients, the US investment bank's analysts repeated a ‘buy’ recommendation and upgraded their earnings forecasts for Barclays for the period between 2022 and 2024.
The Jefferies' analysts said they see adjusted earnings some 26% ahead of market consensus.
They said: “We believe the path to making money is delivery of a near 13% ROTE by '24, catalysed by buybacks expected from Q4 22 results.
"Our investment case on Barclays majors a 12.8% return on tangible equity (ROTE) by 2024 and greater investor appreciation of this potential."
Barclays could pay-out some £3bn of buybacks by the end of 2024, they added.
The Jefferies analysts' base scenario sees Barclay’s share price potentially doubling to 318p, whereas the upside case sees it rising higher – to 382p per share marketing a 142% elevation from current levels.
“Over the next three years, we expect BARC to be able to return over a third of its market capitalization. On adjustedRoRTE, we see expansion driven primarily by operating leverage + lower ‘expected credit losses (ECL) charges than the market expects given robust provisioning," they concluded.