On January 13, Kepler Cheuvreux maintained a Buy rating on Barclays PLC and increased its price target from GBP4.60 to GBP5.40. This followed a similar move by Jefferies analyst Jonathan Pierce, who reiterated a Buy rating on January 6 and raised his price target from 470p to 560p.
The analysts at Kepler Cheuvreux stated their positive outlook is driven by factors like capital redeployment and structural hedge benefits, which are enhancing the bank's returns. They also identified substantial potential for future expansion.
Kepler Cheuvreux pointed to improvements in Barclays' US consumer bank, as well as its UK and investment operations, which offer opportunities for significant cost reductions. The firm forecasts the bank's return on tangible equity will surpass 14% by 2028.
Separately, on January 7, Barclays disclosed a strategic investment in Ubyx Inc., a technology company based in the United States. Ubyx is developing a clearing system for digital money, including tokenized deposits and regulated stablecoins.
Barclays management said this investment corresponds with growing use of tokenized money on public blockchains, beyond cryptocurrency speculation. Barclays PLC, headquartered in London, is a bank holding company offering services in credit cards, retail banking, wealth management, and corporate and investment banking.