Zacks senior banking industry analyst Ann H. Heffron, CFA has recently updated her report on banking giant Barclays PLC (BCS) from a Buy to Hold. Here are some of the reasons why:
'We are maintaining our Hold rating on Barclays PLC, but reducing our target price to $50. Barclays is expected to report its third quarter trading update on November 27, 2007. We are continuing our diluted EPADS [earnings per American Depositary Share] estimates at $5.98 for 2007 and $6.52 for 2008.
'Earnings should benefit from solid economic growth, expected improved operating efficiency, and better control over impairment charges. Our estimates exclude any impact from the potential acquisition of ABN AMRO Holding (ABN), as it appears increasingly likely that Barclays will not succeed in its take-over gambit due to its falling share price.
'Currently, Barclays is trading at 8.8X the consensus earnings estimate for 2007 and 8.0X the 2008 consensus estimate. These are well below the industry median P/E ratios of 12.6X and 11.2X, respectively, also based upon consensus estimates. While Barclays's estimated future growth is below the industry median, Barclays's attractive 5.4% dividend yield should provide support for the stock price.'
Read the full analyst report on BCS.
Read the full analyst report on ABN.
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