Barclays was downgraded to a 'hold' rating by Investec analysts Thursday following the bank's 2012 annual results. "Barclays remains (by far) our preferred UK domestic bank, but we take a breather," Investec broker Ian Gordon said. The comments come after the bank on Tuesday posted its full-year results and outlined its strategic review along with plans to cut 3,700 jobs from the 140,000-strong workforce.The business reported a 26% increase to £7.05bn in adjusted profits before tax for the year ended December 31st, 2012, with an improvement of 46% in Corporate and Investment Banking and 52% in Wealth and Investment Management. The results fell slightly short of market expectations of £7.07bn. Revenues beat the £27.8bn forecast, climbing 2.0% to £29.04bn for the year despite challenging economic conditions, low interest rates and non-recurrence of gains from the disposal of hedging instruments in 2011 of £1.0bn. Adjusted return on average shareholders' equity rose to 7.8% compared to 6.6% in the previous year. Dividend per share rose to 6.5p, up from 6.0p in 2011 and marginally above the 6.45p estimate. Shares fell 2.12% to 319.10p at 12:06 Thursday. However, Investec noted that shares have returned 119% since July's 2012 lows.The analyst also addressed Barclay's cost reduction targets and its investment bank Barcap, saying: "We see Barclays' explicit £1.7bn cost reduction target by 2015 as realistic. "Indeed, although no reduction is targeted in 2013, we do expect lower Barcap costs to more than offset a £0.2bn year-on-year headwind on the bank levy."The broker raised the target price to 340p.RD