What will the election mean for the Barclays share price?
The UK General Election is a week away, but how will it impact the Barclays share price?
The UK General Election will take place on December 12, with analysts from Berenberg telling investors that Barclays could struggle more than domestically focused peers like Lloyds and Royal Bank of Scotland in the wake of the result next week.
However, the Hamburg-based investment bank also said that Barclays will see short-term gains from its investment banking division following the election, with the unit responsible for an 8% growth in income to £5.5 billion in its third quarter.
Looking to trade Barclays and other bank stocks? Open a live or demo account with IG.
Analysts upbeat about Barclays’ share price
Analysts at RBC, Deutsche Bank, and HSBC are all positive about the stock’s price trajectory, with them issuing target prices of 185p, 208p and 210p respectively.
Based on Barclays share price closing at 167p on Thursday, the three banks believe the stock has a potential upside of 10% to 25%.
You can go long or short Barclays with IG using derivatives like CFDs.
UK banking sector headwinds likely to persist in 2020
Speaking more broadly about the sector, Berenberg analysts urged investors to exercise a degree of caution, with the headwinds facing UK banks this year likely to continue into 2020.
‘We believe headwinds from low interest rates and structural challenges facing investment banks remain poorly reflected in consensus and that cost inflation from the necessary investment in compliance and risk controls may be material,’ analysts said in the note.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
