Broker snap: Negative catalysts on their way for Barclays, says Nomura

Nomura has retained its 'reduce' recommendation and 210p target price for Barclays following the revelation of more PPI provisions, saying that the bank is entering a period of potential negative catalysts. Barclays announced last night that it has set aside a further £700m in provisions against the possible costs associated with compensating customers for mis-sold payment protection insurance (PPI). The company now expects adjusted third-quarter pre-tax profits to be "broadly in line with current market consensus of £1.7bn".Nomura said: "Looking at the strength of the results at US peers, meeting what we think of as semi-stale consensus is as good as a miss. The results are bound to underwhelm the market which would have expected some relative strength."As for the upcoming adverse catalysts, the PPI issue is unsurprisingly the first of many negative surprises, the broker said."We expect potential cleanup costs with the arrival of a new CEO, potential to mark level 3/similar assets more conservatively, take more aggressive restructuring measure (provisions-wise) due to external pressure, challenges from forth coming regulation and a rethink around the capital position of the group."By 10:45, shares were down 1.50% at 237.10p.BC