Barclays PLC

Barclays PLC (LON: BARC) is an FTSE 100 Index listed British universal bank. It provides consumer banking and payments operations around the world, along with global corporate and investment banking services.

BARC will pay an interim dividend of 2.00 pence per share on 17 September 2021, while the ex-dividend date was 12 August 2021.

Investment Rationale for Valuation – WATCH at GBX 181.06

• The cost to income ratio had displayed an increase from 57% for H1 FY20 to 64% during H1 FY21.
• The uncertainties created by the Covid-19 pandemic could dent the business to a larger extent.
• The net interest income had witnessed around 8% decline during H1 FY21 as compared to H1 FY20.
• From a technical standpoint, the MACD line remained lower than the signal line, indicating a correction in the stock price.
• Moreover, the 20-days exponential moving average of GBX 182.69 indicates a correction in the stock price.

One Year Share Price Chart

 (Source: REFINITIV; Analysis done by Kalkine Group) 

Conclusion 

Based on the uncertain outlook, unfavourable technical indicators, and increase in cost to income ratio during H1 FY21 as done using the above method, we have given a “Watch” recommendation on Barclays PLC at the current market price of GBX 181.06 (as on 09 September 2021 at 11:29 AM GMT), while we will suggest reinvesting once we identify fresh growth catalysts for the Company.

*The reference data in this report has been partly sourced from REFINITIV.

*Dividend Yield may vary as per the stock price movement.

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