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HSBC raises Barclays stock price target, retains buy rating

EditorNatashya Angelica
Published 18/04/2024, 02:22 am

Wednesday, HSBC analyst Robin Down raised the stock price target for Barclays Plc (LON:BARC:LN) (NYSE: BCS) to GBP2.60 from GBP2.10, while maintaining a Buy rating on the stock. The adjustment reflects the analyst's view that the current stock price does not fully account for the bank's potential, particularly in light of its financial targets and recent changes within the company.

The analyst noted that Barclays is currently trading at a 2026 estimated price to tangible net asset value (P/TNAV) of 0.4x, with an expected return on tangible equity (ROTE) of 11.7%. According to the analyst, this valuation suggests that the market has not yet recognized the full extent of the bank's recent strategic developments or its ability to meet its financial goals.

The new stock price target of 260 pence represents a significant potential upside of approximately 42% from the previous target of 210 pence. This revision is based on the belief that there is "considerable value left on the table," as the stock's current price does not reflect the anticipated improvements and achievements of the company.

The analyst's comments underscore the confidence in Barclays' trajectory and the expectation that the bank will deliver strong financial performance in the coming years. The maintained Buy rating indicates that HSBC continues to recommend Barclays as a good investment opportunity.

Barclays Plc is a global financial services provider with operations in retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. The company is headquartered in London and listed on both the London Stock Exchange and the New York Stock Exchange.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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