After factoring in a target price upgrade, UBS has downgraded its rating for Barclays from buy to neutral, saying that the upside is now more modest."Post Q3, we have modestly upgraded our full year estimates (+2%) but subsequent years are broadly unchanged. While we exclude the pension fund deficit and value of own credit from Barclays' reported tangible book value as our basis for valuation, a higher start point here has led to a modestly higher price target (215p from 208p)," the broker said.UBS expects next year to be similar to 2011, estimating a more balanced source of earnings with Barclays Capital providing a 44% contribution to group pre-tax profit in 2012. "We note that the trends within the Retail/Commercial business were positive in Q3 in that income increased by c.£100m in both the UK Retail Bank and Barclaycard but impairment in both divisions was below Q2 levels."Barclays was one of the worst performers of the day on Tuesday, with shares trading 8.45% down at 178.8p by 10:59.BC