Barclays shares rose on the London Stock Exchange on Monday on the back of a note from Deutsche Bank, which announced this morning that it had raised its price target for the stock.

In a note, the research firm - which is maintaining its buy recommendation on the stock - says it has raised its target from 320 to 350 pence.

The analyst cites "unjustified skepticism" surrounding the British bank, particularly with regard to its dual objective of gaining market share in investment banking and growing in retail banking in the US, where it also wants to improve margins.

Even if these two objectives were not achieved, Deutsche Bank points out that the Group's return on tangible equity (ROTE) would only fall from 12% to 11%, with the cost of equity remaining low at 17%, making the stock one of its top picks in the European banking sector.

Following these positive comments, Barclays shares gained 0.7% on Monday, outperforming a FTSE 100 index up by around 0.1%.

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