02:48 AM EDT, 07/29/2026 (MT Newswires) -- RBC Capital Markets revised its price target and earnings projections for Barclays (BARC.L) in a Tuesday research report as part of a model update following the company's second-quarter earnings. The British lender's first-half group income rose 11% year over year to 16.50 billion pounds sterling, while the second-quarter figure climbed 16% to 8.34 billion pounds. Looking ahead, Barclays targets 31.5 billion pounds in total income for full-year 2026 and expects a compound annual growth rate of more than 5% for 2025 through 2028. The bank also plans to return over 15 billion pounds to shareholders via dividends and share buybacks across 2026 to 2028. Against this backdrop, the research trimmed its price target to 5.50 pounds from 5.75 pounds and reiterated its outperform rating on the stock. Analysts also now model a 2026 total income of 31.9 billion pounds and a three-year cumulative shareholder return for 2026 through 2028 of 17.6 billion pounds. "Our FY27 adj [profit before tax] estimate increases by 2% driven by income ([Investment Bank] revenues/ structural hedge), partially offset by costs (higher IB perf costs less Group incremental cost saves). On a divisional basis, the increase is explained by the IB, partially offset by [US Consumer Bank]. Our net profit estimate decreases by c.1%, driven largely by a higher effective tax rate as we incorporate an assumption that the UK banking surcharge increases from 3% to 5% from FY27E onwards," RBC wrote.

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