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Pin to quick picksBarclays Share News (BARC)

Share Price Information for Barclays (BARC)

London Stock Exchange
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Share Price: 202.35
Bid: 191.00
Ask: 205.50
Change: 0.00 (0.00%)
Spread: 14.50 (7.592%)
Open: 0.00
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Low: 0.00
Prev. Close: 202.35
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2012 to be a tough year for UK, but Citi still overweight on banks

Wed, 08th Feb 2012 16:29

In spite of what Citi believes will be another tough year for the UK economy, the US investment bank has reiterated its overweight position on UK banks.2012 will be another difficult year, the broker says, with "continued emphasis on balance sheet repair after the surge in private and public debt of recent years...The drag from simultaneous de-leveraging by both public and private sectors is without precedent in recent decades, and has much further to go, in our view."Citi expects UK gross domestic product to increase by just 0.2% this year and 1% in 2013 (down from previous forecasts of 0.5% and 1.2%, respectively)."Private sector de-leveraging is clearly to the detriment of bank earnings, and subsequently bank share prices. However, share prices usually move in anticipation of the event and then trough long before the de-leveraging process concludes."Domestic UK bank share prices are up between 31-43% in the year-to-date, compared with a mere 13-14% rise for international banks. The broker argues that at the recent trough in UK bank share prices, the market was discounting "something markedly worse than a 'normal' UK recession"."Combined with cheap bank valuations, and low stock ownership, we therefore do not believe that the UK banks will re-trace their recent lows," the broker said.Citi's preferred bank is Barclays, for which is raises the target from 245p to 275p. It also keeps buy ratings on Lloyds, HSBC and Standard Chartered. The latter however is take off the 'most preferred' as the broker sees limited room for positive surprise around the full-year results.Additionally, the US bank has downgraded Royal Bank of Scotland from buy to neutral but assures that this is mainly due to its lofty valuation, having rallied 43% in the year-to-date, better than its peers. "We believe that RBS shares will now pause for breath."BC
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Friday 3 May 
Ashoka India Equity Investment Trust PLCGM re share issue
HSBC Holdings PLCAGM
Intercontinental Hotels Group PLCAGM
Mondi PLCAGM
More Acquisitions PLCAGM
Monday 6 May 
no events scheduled 
Tuesday 7 May 
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CPPGroup PLCAGM
Just Group PLCAGM
Macfarlane Group PLC AGM
Plus500 LtdAGM
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Wednesday 8 May 
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Antofagasta PLCAGM
Aston Martin Lagonda Global Holdings PLCAGM
Deltex Medical Group PLCAGM
Direct Line Insurance Group PLCAGM
Fidelity European Trust PLCAGM
Haleon PLCAGM
Jardine Matheson PLCAGM
JZ Capital Partners LtdEGM re investing in a secondary fund
Oscillate PLCAGM
Pershing Square Holdings LtdAGM
Rentokil Initial PLCAGM
WPP PLCAGM
Thursday 9 May 
Ascential PLCAGM
BAE Systems PLCAGM
Balfour Beatty PLCAGM
Barclays PLCAGM
CAB Payments Holdings PLCAGM
Catenai PLCGM re convertible loan note
Clarkson PLCAGM
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Genel Energy plcAGM
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Indivior PLCAGM
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Man Group PLCAGM
Morgan Advanced Materials PLCAGM
OSB Group PLCAGM
Public Policy Holding Co IncAGM
Rathbones Group PLCAGM
RM PLCAGM
Spire Healthcare Group PLCAGM
Synthomer PLCAGM
Uniphar PLCAGM
  
Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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