Barclays’ revenue recovery not reflected in consensus, says Credit Suisse

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A recovery in Barclays PLC’s (LON:BARC) consumer revenues is not currently reflected in consensus, according to analysts at Credit Suisse.


In a note on Friday, the investment bank raised its target price on the FTSE 100 financier to 218p from 217p and retainer their ‘outperform’ rating, saying they expected Barclay’s interim results on July 28 to be characterised by “improving asset quality as six months’ worth of economic upgrades are reflected in provisioning needs”.


READ: UK banks worth buying for discount to wider market, potential for dividends – UBS


“We increase our attributable profit for 2021 by 4% based on higher provision releases in [the second quarter] than we had previously anticipated”, analysts said, adding that in the half-year results they expected to “hear more on costs given the ongoing real estate review” although said they expected structural cost measures at the bank’s UK business to take longer.


Credit Suisse also flagged several key non-earnings catalysts for Barclays including the UK structural costs and “further detail on the Payments businesses later in the year”.


Overall, analysts said they viewed the stock’s valuation as “attractive given the exposure to a consumer recovery”.


Shares in Barclays were down 0.4% at 174.6p in late morning trading.

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