We publish information, opinion and commentary about consumer credit products, loans, mortgages, insurance, savings and investment products and services, including those of our affiliate partners. The Motley Fool Ltd is an appointed representative of Richdale Brokers & Financial Services Ltd who are authorised and regulated by the Financial Conduct Authority (FCA) (FRN: 422737). Any performance statistics that do not adjust for exchange rate changes are likely to result in an inaccurate portrayal of real returns for sterling-based investors.įool and The Motley Fool are both trading names of The Motley Fool Ltd. Exchange rate charges may adversely affect the value of shares in sterling terms, and you could lose money in sterling even if the stock price rises in the currency of origin. They may have other tax implications, and may not provide the same, or any, regulatory protection. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, administrative costs, withholding taxes and different accounting and reporting standards. You should not invest any money you cannot afford to lose, and you should not rely on any dividend income to meet your living expenses. The value of stocks, shares and any dividend income may fall as well as rise and is not guaranteed, so you may get back less than you invested. No liability is accepted by the author, The Motley Fool Ltd or Richdale Brokers and Financial Services Ltd for any loss or detriment experienced by any individual from any decision, whether consequent to, or in any way related to the content provided by The Motley Fool Ltd the provision of which is an unregulated activity. If you require any personal advice or recommendations, please speak to an independent qualified financial adviser. No content should be relied upon as constituting personal advice or a personal recommendation, when making your decisions. The content provided has not taken into account the particular circumstances of any specific individual or group of individuals and does not constitute personal advice or a personal recommendation. Any opinions expressed are the opinions of the authors only. We have taken reasonable steps to ensure that any information provided by The Motley Fool Ltd, is accurate at the time of publishing. For those reasons, I’ll be looking to buy Barclays shares for its cheap multiples, upside potential, and lucrative forward dividend yield of 6.1%. Pair the above with a strong outlook and an eventual rebound in its investment banking division, and there are plenty of catalysts to push the stock upwards. And with an average target price of £2.43, there’s about a 70% upside from current levels. Citi, UBS, and JP Morgan all have a ‘buy’ rating on the stock. What’s more, with such cheap valuation multiples, it’s easy to see why brokers are so bullish on Barclays shares. In fact, it’s even reported an uptick in customer deposits since the start of the banking crisis, as customers flood to safer organisations to store their cash. This is because of its healthy asset base and liquidity. That said, it’s unlikely that the FTSE 100 stalwart requires financing for the foreseeable future. Hence, those buying Barclays stock may see their positions diluted if the conglomerate opts to raise capital via equity. The evaporation of Credit Suisse’s AT1 bonds could deter fixed income investors from buying bank bonds. That’s because there are other risks involved when it comes to investing in Barclays, such as its own regulatory issues that have long been its Achilles heel.Īdditionally, raising capital in the future may not be as easy for the company. Nevertheless, the route back up may not be entirely smooth. On that basis, Barclays shares may be oversold and could soar from here. This has been backed by the fact that the Bank of England hasn’t received any bids from local firms for US dollars to shore up liquidity. Meanwhile, the Federal Reserve is working very closely with central banks from Europe, UK, Japan, Canada, and Switzerland by allowing them to borrow US dollars to shore up any liquidity issues.Įither way, Goldman Sachs has reiterated its stance that UK banks are resilient. The US Treasury is working on insuring all US bank deposits in an attempt to stop bank runs. Therefore, it’s been a relief to see the authorities step in to try to put a stop to the current situation. Having said that, it hasn’t stopped Barclays shares from falling in recent weeks. Thus, a liquidity crisis is less likely to occur due to more funds being insured by the Financial Services Compensation Scheme (FSCS). More importantly, the share of deposits from retail customers is much higher than commercial ones. Data sources: Lloyds, Barclays, NatWest, HSBC, Santander UK, Credit Suisse, SVB, Signature Bank
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