Barclays PLC, listed as NYSE:BCS, is a major player in the global banking sector, offering a wide range of financial services. The company competes with other financial giants like NatWest Group PLC. Barclays recently reported impressive earnings, with earnings per share of $0.44, surpassing the estimated $0.19. The company also exceeded revenue expectations, reporting approximately $8.01 billion against an estimated $7.27 billion.
Despite initial profit-taking and concerns over falling interest rates, analysts from RBC and UBS maintained their positive outlook on Barclays, reiterating 'outperform' and 'buy' ratings, respectively. RBC's 2026 adjusted profit before tax estimate for Barclays remains largely unchanged, with a potential return on tangible equity of 12.1%, surpassing the guidance of 12.0%.
Barclays concluded its fiscal year 2024 with a strong quarterly update, providing detailed guidance for fiscal year 2025. This guidance aligns closely with pre-result consensus estimates. The company is focusing on cost efficiency to address expense challenges from inflation, ongoing business investments, and increases in UK National Insurance contributions. Barclays' management is committed to maintaining financial stability and growth.
Barclays has a price-to-earnings (P/E) ratio of approximately 31.94 and a price-to-sales ratio of about 1.62. The company's earnings yield stands at 3.13%. However, the enterprise value to sales ratio is negative, at approximately -6.39. Despite this, RBC projects shareholder rewards over the next three years to reach £10.9 billion, maintaining a 340p share price target for Barclays.
