Investec upgrades Barclays to 'buy' but prefers others

(ShareCast News) - Analysts at Investec have upgraded Barclays to 'buy' from 'sell' and held a price target of 270p.Investec said a 15.3% three week correction was the sole reason for the recommendation change, and the bank offers a relatively modest upside on a 12 month view."However, while we now see reasonable upside for Barclays, we think RBS offers a stronger capital story, HSBC a higher dividend yield, and One Savings Bank vastly superior growth and returns."In a note to clients, Investec said it did not expect Barclays to achieve a 10% return on tangible equity before 2018.Investec said it had made "very minor" revisions to forecasts to reflect coupons on Barclays' latest £1bn AT1 issuance, and small downgrades in Africa to reflect further appreciation of the pound against the South African Rand.Shares in Barclays were up by 5.95% to 259.40 at 1226 BST.