What will the election mean for the Barclays share price?

The UK General Election is a week away, but how will it impact the Barclays share price?

The UK General Election will take place on 12 December, with analysts from Berenberg telling investors that Barclays could struggle more than domestically focused peers like Lloyds and Royal Bank of Scotland in the wake of the result next week.

However, the Hamburg-based investment bank also said that Barclays will see short-term gains from its investment banking division following the election, with the unit responsible for an 8% growth in income to £5.5 billion in its third quarter (Q3).

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Analysts upbeat about Barclays’ share price

Analysts at RBC, Deutsche Bank, and HSBC are all positive about the stock’s price trajectory, with them issuing target prices of 185p, 208p and 210p respectively.

Based on Barclays share price closing at 167p on Thursday, the three banks believe the stock has a potential upside of 10% to 25%.

You can go long or short Barclays with IG using derivatives like CFDs.

UK banking sector headwinds likely to persist in 2020

Speaking more broadly about the sector, Berenberg analysts urged investors to exercise a degree of caution, with the headwinds facing UK banks this year likely to continue into 2020.

‘We believe headwinds from low interest rates and structural challenges facing investment banks remain poorly reflected in consensus and that cost inflation from the necessary investment in compliance and risk controls may be material,’ analysts said in the note.


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