Barclays PLC 

Barclays PLC (LSE: BARC) is an FTSE 100 Index listed Bank that provides consumer banking and payments services around the world, along with global corporate and investment banking services. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Investment Rationale – Sell at GBX 155.58

• Resistance near Current levels: BARC’s stock price almost touched the Resistance (R1) stated in the previous report on 20 November 2023, and might witness some sell-off from the current levels. Considering the market conditions and the price action, it is prudent to exit the stock, as the prices might pull back from these levels.
• Deteriorating Tier 1 Risk-Adjusted Capital Ratio: The bank reported a Tier 1 Risk-Adjusted Capital Ratio of 17.50% in Q3 FY23 which is lower than 17.90% in the previous reported period (Q2 FY23). A lower Tier 1 Risk-Adjusted Capital Ratio signifies the bank's declining financial strength to endure adverse market conditions during the credit crunch.
• Decline in Key Performance Indicators: The bank reported a decline in loan growth during Q3 FY23 to 0.7% as compared to 3.8% during Q1 FY23. The deposit growth also slipped to 1.2% in Q3 FY23 against 1.8% in Q1 FY23.

Share Price Chart  

Conclusion

Based on the notional gains, macroeconomic challenges, and price action stance, a "SELL" recommendation on Barclays PLC (LSE: BARC) has been given at the closing market price of GBX 155.58 (as of 04 January 2024).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 04 January 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.