UBS cuts Barclays target price but re-rating still expected

UBS has trimmed its target price for Barclays from 305p to 295p following the bank's results this week, but kept a 'buy' stance on the stock telling investors to expect a "continued re-rating".The stock's current valuation remains "unchallenging", according to UBS.It said Barclays delivered a mixed set of fourth-quarter results, with solid progress made on balance-sheet metrics but profits coming in lower than forecasts due to weak revenues from non-core operations.Earnings estimates for 2015 and 2016 have been lowered by around 7-8%."However, we see little in Q4 results to change our medium-term profitability expectations," UBS said."With around a third of group capital currently consumed by an under-earning Corporate and Investment Banking (CIB), and a third of capital within the loss-making non-core: we see material medium-term upside as management reposition the business towards its low-volatility, high profitability core."After heavy falls the previous session, Barclays shares were up 0.4% at 255.04p by 11:29 on Wednesday.