Barclays Share News (BARC)

(ShareCast News) - HSBC downgraded Barclays to 'hold' from 'buy' and cut the price target to 190p from 230p to reflect disappointment over the bank's dividend decision and the uncertain background for investment banking earnings."The restructuring story has been clouded by management's decision to cut 2016-17 dividends to 3p, which is less than half the current year payout," HSBC said.Earlier this month, Barclays confirmed plans to sell its African business as it announced a 2% drop in full year profit and said it would slash its dividend.Nevertheless, HSBC said Barclays' restructuring plan is coherent and will ultimately deliver a slimmed down group with acceptable profitability.It argued that the proposed divestment of Barclays Africa Group Limited, whilst creating a void in the earnings line, should at least remove uncertainty regarding capital adequacy."Theoretically at least the upside from the elimination of non-core businesses should be considerable, but it doesn't look imminent," said HSBC.HSBC cut its earnings per share forecasts for 2016-2017 to 11p and 23p from 24p and 33p, respectively.At 1324 GMT, Barclays shares were down 3.2% to 155.30p.