Barclays: 0.4x Net Tangible Assets, 10% ROE, Share Buybacks, Safe Dividends But Still Cannot Catch A16 Oct 2022 20:54
The lasted update from SeekingAlpha, prior to the Q3 Results….
“Final Thoughts
The recent sell-off of Barclays, in my view, is driven by the political risk premium introduced by the new UK Conservative government's policies.
The good news is that it appears that the Bank of England ("BoE") Chief, Andrew Bailey, has won the game of Chicken with the UK government with the sacking of the UK Finance Minister after 38 days at the helm.
Barclays is still trading at a distressed valuation, it buys back stock at a massive discount to net asset value, delivers returns above its cost of capital, and greatly benefits from the rise of interest rates.
It is also a dividend growth stock and I expect it to yield between 5% and 6% at current prices, which is likely to progressively grow from there. Naturally given the discount to book, buybacks are currently favored. Final Thoughts
The recent sell-off of Barclays, in my view, is driven by the political risk premium introduced by the new UK Conservative government's policies.
The good news is that it appears that the Bank of England ("BoE") Chief, Andrew Bailey, has won the game of Chicken with the UK government with the sacking of the UK Finance Minister after 38 days at the helm.
Barclays is still trading at a distressed valuation, it buys back stock at a massive discount to net asset value, delivers returns above its cost of capital, and greatly benefits from the rise of interest rates.
It is also a dividend growth stock and I expect it to yield between 5% and 6% at current prices, which is likely to progressively grow from there. Naturally given the discount to book, buybacks are currently favored.
At an earnings yield well above 20% and conservative management of credit risk. I believe BCS is a strong buy.
Regards, MrA
https://seekingalpha.com/article/4546824-barclays-strong-fundamentals-still-cannot-catch-break
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