Barclays is transforming into a more profitable, shareholder-focused bank, targeting a sustainable RoTE above 12% by 2026 through RWA redeployment and efficiency gains. A multi-year capital return plan of at least £10 billion, supported by strong buybacks and dividend growth, underpins EPS and Tangible NAV upside. Key risks include execution shortfalls, reliance on volatile Investment Bank income, UK deposit contraction, and competitive pressures on Net Interest Income.
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RBC Capital Markets has given a fresh vote of confidence to Barclays PLC (LSE:BARC), raising its price target for the bank to 435p from 355p following the lender's second quarter results. The analysts reiterated their “outperform” recommendation, pointing to what they see as an attractive entry point, highlighting stronger-than-expected momentum in several divisions.
These standouts offer diversity that expands across the finance scale, from a foreign banking institution to a leading insurance company and an up-and-coming consumer loan service provider.
BCS' Q2 net income surges 34% as revenues rise 14%, offsetting higher expenses and credit impairment charges.
Barclays posted a Q2 2025 result that contained more positives than negatives, with continued income support from Global Markets and a low bad debt charge. Barclays' target RoTE for FY26E of at least 12% will require a continuation of current supportive trends and, as such, should be regarded as a stretch target. Although the stock's price to TNAV discount has almost entirely closed, high levels of near-term expected profitability align with an undemanding valuation and justify a continued Buy rating.
Barclays PLC (LSE:BARC) shares rose 2.5% after second-quarter results beat expectations, with analysts highlighting the strong performance of the bank's investment banking business. UBS, which has a 'buy' rating and a 415p price target on the shares, says the results were driven by better-than-expected profits from the group's global banking and markets division.
Barclays PLC (LSE:BARC) announced a further £1 billion share buyback and nudged its interim dividend up 3.5% as profits came in higher than expected despite a decline in investment banking fees compared to last year. The FTSE 100-listed lender reported a 14% rise in income to £7.2 billion for the second quarter of 2025, with Barclays UK up 12%, UK Corporate up 17%, Barclays Investment Bank up 10% and US Consumer flat.
Investors have been watching the performance of the lender's sharpened investment banking unit, which posted income of £3.3 billion the three months to June.
BCS prepares for Q2 results, with gain forecasts in IB, trading and NII, plus updates on its payments partnership.
I rate Oscar Health as a buy, viewing short-term regulatory headwinds as a buying opportunity given its long-term growth prospects. Oscar's strong revenue growth, improving profitability, and efficient SG&A management support my positive outlook, despite recent bearish analyst coverage. The company's strategic expansion into the ICHRA market and deployment of AI technology are key drivers for future revenue and cost efficiency.
Does Barclays (BCS) have what it takes to be a top stock pick for momentum investors? Let's find out.