Analysts at Deutsche Bank have reiterated their 'buy' rating on Barclays (LON:BARC) stock and raised the price rating to GBX 239. Their new recommended target price comes in ahead of Barclay's current consensus target price of GBX 227.37.
Barclays on the rise after numerous setbacks this year
These ratings indicate a positive turnaround for the company which has seen its share price drop from 195.50 over the last month, to its current value of 183.32p, down 0.21 per cent, as of 8.34 BST.
Uncertainty amongst investors following conduct charges
The bank has sustained several setbacks this year, most notable of which was the £1.4bn settlement paid to the Department of Justice after the mortgage scandal, closely followed by the £400mn they returned in mis-sold PPI insurance. These hits had a huge impact on Barclays overall profit, with the company reporting a pre-tax profit of 1.66bn, almost 30% ahead of last year’s £2.34bn.
Dividend Yield remains one of the lowest amongst FTSE 100 Banking giants
Barclays currently has one of the lowest dividend yields out of all the FTSE 100 banking giants at just 3.4% which is approx. 6.5p per share. Whilst relatively low in comparison to the likes of Lloyds Banking Group PLC (LON:LLOY) or HSBC Holdings PLC (LON:HSBA) who offer 5.4% and 5.5% respectively, it is a huge rise on their previous dividend of 1.32%, which is indicative of a turnaround in the company’s fortunes.
Change of focus could see Barclays succeed in spite of upcoming uncertainties
Peter Stephens, reporting for The Motley Fool recently commented that James Edward 'Jes' Staley current business model is seeking to increase financial strength by "placing less emphasis on dividends".