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. Barclays (LSE: BARC) The price of the shares increased in 2024. Actions were one of the FTSE 100The distinctive contractor, providing 65% return over the past year and 110% in two years. However, despite this Star Run, analysts see even greater potential, and the bank combines solid foundations and convincing indicators. Let’s take a closer look.
Still discounting compared to the global peer group
In 297 penses, Barclays trades in a forward price (P/E) 7.7 times for 2025-indication below S&P 500 Financial sector 17.9 times. This discount persists even when considering sturdy prospects for an raise in earnings.
It is forecasted that Barclays’s profit per share (EPS) will continue to raise in the average period:
| Year | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|
| EPS (£) | 0.348 | 0.4055 | 0.5058 | 0.5657 |
This 62% accumulated EPS growth by 2028 is driven by:
- Net interest income Guidelines of 12.2 billion GBP for 2025 (+9% y / y)
- Operational margin expansion to 38.3% in 2025 (from 30.3%)
What’s more, these numbers of growth of earnings indicate the ratio of P/EA-to-Widow (PEG) of about 0.6. This suggests that the supplies are significantly underestimated. Similarly, Barclays has a price value (p/b) 0.7 times. It is much below the reference point of one and far behind, peers – some of them trade about two p/bs.
What’s more, Barclays pays a sturdy dividend according to global standards. While the efficiency has dropped to about 3%, because the price of the shares increased, the range of the range is currently 4.6 times. This ensures great safety for future dividend increases. What’s more, this PEG ratio corrected with dividend (factoring of both height and efficiency) is about 0.4.
Consensus analytics: stubborn but cautious
17 analysts covering Barclays shows measured optimism:
| Metric | Value |
|---|---|
| Average target price | 348.4p |
| High estimation | 395p (+33%) |
| Low estimation | 230p (-23%) |
| Consensus assessment | Buy (9 Buy, 6 Better, 2 Hold) |
This basically supports the above valuation data. However, there is an element of caution. Simply corrected with dividend, the PEG indicator ensures that shares can be trade twice as high as today, and analysts do not agree.
This may be a reflection of several things. The company’s surgical resistance may be questioned after the IT crash, which caused a salary in the amount of 7.5 million pounds. Similarly, the impairment fees remain relatively high in the long term. There may also be a circumscribed fine associated with improper selling motor financing.
What’s more, Barclays is still largely a bank addressed to Great Britain. Bank operations in Great Britain were in fact the most effective, and the bank plans to change 30 billion pounds of assets weighted to the segment in the coming years. However, Great Britain is still a relative global Laggard.
Lower line
Analysts forecast 17-20% of total returns (bringing prices + dividends) over the following year, Barclays shares offer both value and growth characteristics. Personally, I am also stubborn in Barclays. However, I am afraid that macroeconomic problems and market forecasts will probably raise the development of action. I also do not see that the Chancellor’s budget is nothing but a disappointment.
My conservative estimates make Barclays rise to about 330 pence in the next 12 months. I already have a vast position in Barclays, but I can add to it if there is an opportunity.
