(ShareCast News) - Deutsche Bank upgraded Barclays to 'buy' from 'hold' and lifted the price target to 270p from 198p, saying the company is well placed for 2017.DB said that following a year of restructuring, transition to a new reporting structure and favourable macro trends, particularly FX, the bank has kicked off the year well placed for earnings growth."Improved capital markets conditions should help soften a weaker top-line in retail, whilst we see opportunity for cost reductions in the IB & non-IB businesses. Meanwhile we expect credit costs to remain robust given better macroeconomic data and credit performance history, and capital remains on-track," Deutsche said.The shares have performed well since the US election in November, but Deutsche reckons there is more upside from here.DB said there are still risks, with Barclays inherently exposed to capital markets revenue conditions and the UK economy, while the lack of clarity on regulatory rules and the risk of trapped capital, particularly in the US, also remain.However, it argued that Barclays' more agency-led investment banking model gives some protection from volatile shocks. In addition, it said the credit quality of the bank's retail book looks robust, while the capital ratio has the benefit of the sale of Africa in train.