Street Calls of the Week
Investing.com - CFRA has upgraded Barclays (NYSE:BCS) from Hold to Buy and raised its price target to $24.00 from $21.00, citing improved profitability and earnings resilience. The stock, currently trading at $20.55, has delivered an impressive 49.49% return year-to-date, according to InvestingPro data.
The research firm noted that Barclays’ third-quarter 2025 results demonstrated a significant improvement in earnings quality, with upgraded Return on Tangible Equity (RoTE) guidance, resilient divisional performance, and a robust capital return program. The bank’s revenue grew 10.34% in the last twelve months, with a market capitalization of $71.78 billion.
Despite a recent rally in the share price, CFRA believes Barclays stock still trades at a discount to peers, offering potential for re-rating as management delivers on its target of over 11% RoTE.
The new price target of $24.00 reflects a 2026 price-to-earnings ratio of 8.82x, representing a premium to Barclays’ five-year historical forward P/E average of 7.46x, which CFRA considers warranted given the bank’s improved financial profile.
CFRA identified several potential catalysts for the stock, including further recovery in investment banking activities, continued growth in UK mortgages, and additional share buybacks expected in 2026.
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