Barclays: Still Trading At 0.6x 2026 Book Value
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Barclays is trading at approximately 0.6 times its 2026 tangible book value, despite a 70% year-to-date increase. The bank aims for a 12% return on tangible equity by 2026, focusing on high-return UK segments and cost efficiency. Analysts expect Barclays to meet cost-income targets but fall short on RoTE due to lower revenue growth, with its current valuation reflecting a discount to U.S. peers.
December 20, 2024 | 9:15 pm
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Barclays is trading at a significant discount compared to its U.S. peers, at 0.6 times its 2026 tangible book value, despite a 70% increase in its stock price year-to-date. The bank's focus on high-return UK segments and cost efficiency is driving its current outperformance. However, analysts expect it to meet cost-income targets but fall short on return on tangible equity due to lower revenue growth.
Barclays is trading at a discount to its U.S. peers, which could attract investors looking for value. The bank's focus on high-return UK segments and cost efficiency is a positive sign for future performance. However, analysts' expectations of lower revenue growth impacting RoTE could limit upside potential. Overall, the current valuation and strategic focus suggest a positive short-term impact on the stock price.
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