Deutsche also lowered the bank’s target price to 250p – still far above the price of 209.1p seen in afternoon trading on Friday.
The analysts retained their ‘buy’ rating on Barclays and said key issues in the results would include investment-bank performance, where a good quarter was expected, as well as capital and costs. Higher cost forecasts were to blame for the lowered target price, the analysts said.
Royal Bank of Scotland (RBS) also reports on Friday (28 April) and was also the subject of a preview note from Deutsche last week.
The analysts predicted a “quiet” first quarter for the bank, which updated on issues including its dividends in its final results for last year.
Deutsche lowered its target price for RBS to 240p, compared to Friday’s share prices at 241p, and reiterated its ‘Hold’ rating, saying the focus would be on margins and loan growth and the status of Natwest’s volatile Natwest Markets division.
RBS has continued to blame “legacy issues” for its endless losses in recent years, including the ongoing PPI claims against the firm.
Earlier this month UK chancellor Philip Hammond confirmed RBS shares were likely to be sold at a loss by the government in the long run.
Jupiter’s Davies said RBS’s results tended to be “nightmarishly complicated” and several obstacles remained before it could return a dividend to shareholders, though the government was taking promising action to address some of these.
Elsewhere, Asia-focused Standard Chartered will this Wednesday (26 April) approach the markets.
Graham Spooner, investment research analyst at The Share Centre, said the firm had a ‘hold’ rating on the bank.
“The health of emerging markets, which is a key for the bank, will be a focal point for investors, as this is a market that has been in recovery mode over the past two years,” he said.
“As a result of its past over aggressive expansion the bank has been restructuring. Investors will therefore be focusing on costs and hoping that the banking situation is stabilising.”
