Goldman says this market-beating bank stock has a lot further to run

Oct. 8, 2024 - CNBC

Goldman Sachs thinks that U.S.

-traded shares of Barclays still have a long growth runway ahead, even after already beating the market so far in 2024. The firm initiated coverage of the banking stock with a buy rating and a 290 pence per share price target on Tuesday.

Goldman analyst Chris Hallam forecasts that Barclays could grow its earnings per share twice as fast as peer firms through 2027, while a steep discount on the stock gives investors an attractive entry point. ""The Investment Bank [portion of Barclays' business] is at-scale but currently under-earning," Hallam said.

Hallam noted Barclays stock currently trades at roughly six times its 12-month forward price-to-earnings ratio, compared to the wider group of banks covered by Goldman that trade at seven times forward P/E...