Barclays share price heads south as Berenberg turns bearish on bank

on Jan 30, 2017
Updated: Oct 21, 2019

Shares in Barclays (LON:BARC) have fallen deep into the red in today’s session, underperforming the broader market, as analysts at Berenberg turned bearish on the bank, arguing that ‘no party lasts forever,’ Proactive Investors has reported. The downbeat comments come ahead of the FTSE 100 lender’s results next month.

As of 13:16 GMT, Barclays’ share price had given up 2.41 percent to stand at 225.03p, as compared with a 0.82-percent dip in the benchmark FTSE 100 index. The bank’s shares have gained just under 21 percent over the past year, and are up by about 0.7 percent in the year-to-date.
Berenberg trimmed its stance on Barclays to ‘sell’ today, arguing that the US and UK consumer credit cycles were “nearing a crescendo”, while structural headwinds to investment banking (IB) remained, despite elevated event-driven activity during the second half of 2016. The FTSE 100 group has been looking to turn into a transatlantic bank, with a focus on its operations in the UK and the US.

“We believe Barclays has strong core businesses relative to European peers but remains susceptible to normalised credit losses and IB activity,” the analysts pointed out, as quoted by Proactive Investors. “We believe Barclays is strategically well placed as the top-ranked European IB in the US but expect structural headwinds to outweigh this relative strength.”
The 19 analysts offering 12-month price targets for Barclays for the Financial Times have a median target of 230.00p, with a high estimate of 275.00p and a low estimate of 170.00p. As of January 28, the consensus forecast amongst 25 polled investment analysts covering the stock advises investors to hold their position in the company. Barclays is scheduled to update investors on its full-year performance on February 23.
As of 13:43 GMT, Monday, 30 January, Barclays share price is 224.80p.

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