07:57 AM EDT, 09/03/2026 (MT Newswires) -- Berenberg made "minor" changes to its EPS forecasts for Barclays (BARC.L), noting that the British banking group's current valuation does not reflect its improving returns profile. "Barclays' shares have de-rated over the past month, as they have not recovered from their post-Q2 results decline (shares are down c9% since then), while two-year forward consensus EPS estimates have remained broadly stable during the period. The operating performance of the bank continues to improve, with the Investment Bank (IB) returns set to continue rising as revenue and cost initiatives bear fruit, while the UK Corporate Bank has ample room to grow," analysts wrote in a note published Thursday. Against this backdrop, the research firm edged down its 2026 EPS estimate by 0.3%, while the projections for 2027 and 2028 were both nudged 0.1% lower. The buy recommendation on the stock and price target of 6.20 pounds sterling remain unchanged. "Our price target implies a two-year forward P/E of 8.8x, which is a c30% premium to Barclays' average two-year forward P/E over the past 15 years, reflecting our view that the shares should be trading at a structurally higher level than in the past given the improving, and more resilient, returns profile of the bank," Berenberg added.

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