RBC Capital Markets reiterates 'buy' rating on Barclays
By Iain Gilbert
Date: Monday 17 Feb 2025
(Sharecast News) - Analysts at RBC Capital Markets took a fresh look at Barclays on Monday following the bank's Q424 earnings, reiterating its 'outperform' rating and 340.0p target price
RBC Capital Markets said its FY26 adjusted pre-tax profit estimates remain broadly unchanged, as slightly lower income and higher cost estimates were offset by lower impairment charges.
On a divisional basis, RBC Capital said a small increase in pre-tax profit estimates for Barclays Investment Bank, as well as a smaller loss in its Head Office, were largely offset by lower US Consumer Bank estimates.
The Canadian bank also updated its structural hedge modelling and now estimates structural hedge income of £6.1bn/£6.6bn/£6.8bn in FY25/FY26/FY27, respectively.
"Our numbers assume that: i) relative to Q4, BARC's hedge notional falls c. £2bn in 2025 and remains broadly stable thereafter; and ii) 5yr swap rates average 3.7%/3.1%/3.0% in 2025/26/27 (BARC assumption of c.3.5% in FY25), remaining broadly stable at c.3% until 2030," said RBC.
Reporting by Iain Gilbert at Sharecast.com
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