Is the Barclays share price heading for 19% gains?
Deutsche Bank upgraded its share price target for Barclays, citing reduced risk of a no-deal Brexit for its optimism, despite the bank’s third quarter results showing continued pressure on revenues.
Analysts at Deutsche Bank are optimistic about Barclays future, with the German investment bank upgrading its target price for the British bank in November.
‘While political uncertainty continues to weigh on economic activity, the risk of a crash Brexit has receded,’ Deutsche Bank told investors in a note last week.
Deutsche Bank upbeat about Barclays share price trajectory
Deutsche Bank retained its ‘buy’ rating for the stock in November, upgrading its target price to 205p a share.
Based on Barclays share price trading at 172p as of 15:45 GMT on Tuesday, Deutsche Bank believes that the stock has a potential upside of 19%.
Barclays Q3 results highlight pressure on revenues
Deutsche Bank’s optimism is good news for Barclays and other British lenders, especially after UK banks third quarter earnings disappointed after last-minute PPI claims nearly wiped out their profits and highlighted continued pressure remains on revenues.
Investors will be paying close attention to how the bank and its peers like Lloyds, Royal Bank of Scotland and HSBC perform in their fourth and final quarter now that the PPI scandal has finally been put to bed.
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