Barclays Harvest
March 27th, 2009
A clear sign this morning that the worst of the banking crisis may be over. Throughout the crisis, Barclays (BARC) has been adamant that it has sufficient capital and reserves in place to cover its obligations. This morning it was announced the bank had passed an all important FSA stress test, designed to judge whether or not the bank needs more capital
On top of this Credit Suisse have upped their target price to 170p from 110p due to the imminent £4bn cash injection from the sale of the its iShares business. Once this money comes in, Barclays has a few days until the end of March to decide if it wants to join the government’s toxic asset protection scheme. But now the FSA have given the green light, it means Barclays can decide whether or not to join on its own terms rather than be forced into the scheme in the same way as Lloyds (LLOY) and RBS (RBS).
Given this solvent position and the strong results announced earlier this month, Barclays still looks very cheap in spite of the near doubling in price over the past few sessions. So I’m picking some more up, (incidentally at around the same level at which the Mid-East money bought in late last year). A short term target price of 168p and then onwards and upwards looks the order of the day
Blue Index :|
March 27th, 2009
A clear sign this morning that the worst of the banking crisis may be over. Throughout the crisis, Barclays (BARC) has been adamant that it has sufficient capital and reserves in place to cover its obligations. This morning it was announced the bank had passed an all important FSA stress test, designed to judge whether or not the bank needs more capital
On top of this Credit Suisse have upped their target price to 170p from 110p due to the imminent £4bn cash injection from the sale of the its iShares business. Once this money comes in, Barclays has a few days until the end of March to decide if it wants to join the government’s toxic asset protection scheme. But now the FSA have given the green light, it means Barclays can decide whether or not to join on its own terms rather than be forced into the scheme in the same way as Lloyds (LLOY) and RBS (RBS).
Given this solvent position and the strong results announced earlier this month, Barclays still looks very cheap in spite of the near doubling in price over the past few sessions. So I’m picking some more up, (incidentally at around the same level at which the Mid-East money bought in late last year). A short term target price of 168p and then onwards and upwards looks the order of the day
Blue Index :|