Opinions
Paul Harris, CFA
Barclays Bank PLC
BCS-N
TOP PICK
Sep 24, 2014
$15.130
Stock price when the opinion was issued
banks
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
WEAK BUY
Best European bank? European banking is difficult, given negative interest rates. Best in class is Barclay's for its investing banking business or Lloyd's Banking. There should be more consolidation here, but it's difficult in Europe (look at ATD'B trying to buy Carrefour this month).
banks
Premium content
TOP PICK
Stockchase Research Editor: Michael O'Reilly BCS is one of the UK's top retail banks and is well diversified across personal, corporate, investment banking, credit and wealth management. It trades at 6x earnings compared to peers at 12x. With a good earnings outlook, its PEG ratio is only 0.18 and it trades below book value. It has a small dividend, backed by a payout ratio of only 10% of cashflow and it is building its cash reserve holdings. We would buy this with a stop loss at $8.25 looking to achieve $12.50 -- upside potential over 25%. Yield 0.61% (Analysts’ price target is $12.54)
banks
Premium content
TOP PICK
Stockchase Research Editor: Michael O’Reilly We reiterate BCS as a TOP PICK. The UK top ranked retail bank is well diversified across personal, corporate, investment banking, credit and wealth management. It trades at 7x earnings compared to peers at 14x and it trades below book value. It has a small dividend, backed by a payout ratio of 50% of cashflow and it is building its cash reserve holdings. We would buy this with a stop loss at $9.25 looking to achieve $12.50 -- upside potential over 16%. Yield 2.05% (Analysts’ price target is $12.46)
banks
Premium content
PAST TOP PICK
Premium content
PAST TOP PICK
Premium content
PAST TOP PICK
(A Top Pick Oct 07/21, Down 3.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BCS has triggered its stop at $10.25. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 1%, when combined with the previous buy recommendation.
banks
DON'T BUY
UK banking sits somewhere between the Swedish/Canadian model and the US model. Fewer players, strong and well-protected balance sheets, growing organically. It's OK, but you are exposed to the UK and its pressures on consumers, housing, and the economy. Valuation is OK. He'd prefer a Canadian pick. Yield is 2.9%.
banks
Bought Leman Brothers. They are now a very substantial investment bank. It is a great franchise in the UK and they have a great wealth management business. They are going to be a smaller investment bank so their cost structure will go down. Their Barkley’s card is quite strong.