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Pin to quick picksBarclays Share News (BARC)

Share Price Information for Barclays (BARC)

London Stock Exchange
Share Price is delayed by 15 minutes
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Share Price: 210.35
Bid: 209.85
Ask: 209.95
Change: 8.00 (3.95%)
Spread: 0.10 (0.048%)
Open: 204.25
High: 210.65
Low: 204.10
Prev. Close: 202.35
BARC Live PriceLast checked at -

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Broker snap: Credit Suisse cuts its targets for three UK banks

Thu, 28th Jul 2011 09:38

At a moment when, "the market is preoccupied with concerns over sovereign debt, and ring fencing in the UK," analysts at Credit Suisse have today decided to mark down their price targets on three banks for the following reasons:Barclays: Analysts have lowered their 2011 and 2012 EPS estimates for Barclays by 5% and 6%, respectively, to 16.8p and 30.5p per share. The above cuts result in a now slightly lower price target, of 315p, versus the 325p previously foreseen. The main reason for the revisions is the deterioration seen in the trading environment coupled with the fact that Credit Suisse does not see costs coming down quiet so quickly, resulting in an increase in the bank's cost to income ratio (CI) to levels above management's expectations (60-65%). More pressure on restructuring the business could be seen in the second half of 2011 the say. Lloyd's Banking Group: The lender's net interest margin is expected to decline slightly throughout the year, whereas, "(...) medium term guidance and consensus expectations are predicated on an improvement here," these analysts comment, adding that, "we will be watching this closely." Analysts also signal that they will be on the look-out for further indications on the bank's asset quality, give the prospects, now, for weaker UK growth. For those reasons the bank's price target has been taken down to 50p, from 55p before. An announcement on the sale of branches will be an important catalyst. Royal Bank of Scotland: CS analysts have lowered their price target to 40p, from 42p, mainly due to a now 17% lower 2012 EPS estimate, on the back of lower Global Banking&Market revenues (GBM) revenues. A 50% reduction in GBM revenues is forecast for the second quarter. Also to watch closely, whether the bank is continuing to progress in its aim of 'running-off' certain non-core operations. Another risk factor to be watched is the exposure of its subsidiary Ulster Bank to a weaker than expected Irish economy. AB
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