Analysts at Berenberg bumped up their target price for shares of Barclays from 230.0p to 245.0p, telling clients that the lender’s third quarter numbers had confirmed that it was “well placed” to profit from a recovery among UK and US consumers.
Indeed, the results had also suggested that those benefits might now even be larger.
In particular, they noted how credit card balances in the US were now growing as was Barclays’s sensitivity to rising interest rates.
Further strengthening the investment case was the lender’s greater confidence on costs and its ability to support attractive capital returns.
Changing hands on 7.2 their estimates for its 2022 financial year earnings per share put them on a 20% discount to the sector.
Hence their conclusion that the shares were “undervalued” and their decision to reiterate their ‘buy’ recommendation.
