Proactive Investors - All the big UK banks performed better than expected in the first quarter, according to broker Shore Capital, but Barclays (LON:BARC) is the standout going forward.
Barclays, Virgin Money (LON:VMUK), NatWest (LON:NWG), Standard Chartered (LON:STAN), Lloyds (LON:LLOY) and HSNC, are the order that the broker rates the shares currently, but all are buys with a 66% average upside to what it sees as fair value.
Barclays' fair value nudges up to 315p from 300p on ShoreCap’s assumptions, which it points out is more than double the current market price.
Lloyds, too, did better than expected with returns on track to exceed its own target this year and Shorecap has nudged its price target up to 69p from 66p.
NatWest’s target rises 405p from 400p on the back of better returns than peers, with buybacks and special dividends also possible.
Standard Chartered’s target price rises to 960p from 935p, while HSBC (LON:HSBA) goes up to 765p (740p) but has the lowest upside potential and is the least preferred.
Virgin Money is the only bank to get a price target reduction, to 305p from 320p, but is vulnerable to a takeover at this level believes Shorecap hence the buy rating.