Citi downgrades Barclays to 'neutral'

(Sharecast News) - Citi downgraded its stance on Barclays on Friday as it took a look at European banks and exchanges.

"Industry wallet trends remain encouraging, but we see European wholesale banks reporting slower trading revenue growth versus US peers, due to business & regional mix, market share losses (especially at Deutsche Bank), negative FX translation (especially Barclays) and LCM marks (UBS)," it said.

Citi downgraded Barclays to 'neutral' from 'buy' but lifted the price target to 366p from 360p following the run-up in the shares.

It said Deutsche Bank and UBS remain on its least preferred list.

Citi maintained its 'buy' ratings on BNP and Societe Generale, but acknowledged that French political risk premium is again rising.

On exchanges, it said Deutsche Boerse and Euronext volumes are already captured in consensus and slowed as the quarter progressed.

LSEG is Citi's preferred structural growth play but continues to be hindered by US dollar depreciation, it said.

Barclays