JP Morgan raises Barclays target price to 500p from 420p

JP Morgan raises Barclays target price to 500p from 420p

JP Morgan has raised its target price for Barclays shares to 500p from 420p, reflecting a bullish outlook on the bank's financial performance. The update comes amidst a period of strong growth and positive investor sentiment surrounding the UK-based financial institution.

Barclays has been performing well, with its share price surging by almost 240% since September 2020, and a total return on investment of around 300% when dividends are factored in [2]. The bank's CEO, CS Venkatakrishnan, has emphasized the importance of investment and appropriate spending to drive economic growth, rather than additional bank taxes [1].

Analysts at JP Morgan have cited several factors contributing to their optimistic view. These include Barclays' improving capital position, persistent net interest margins, and a recently launched £1bn share buyback program. Additionally, the bank's investment banking arm has shown a sustained pickup in activity, with clients feeling a relative sense of stability about the future of tariff policy and the global macroeconomic situation [1].

However, the bank faces some headwinds, including the potential impact of US tariffs on its US consumer business and the possibility of central bank interest rate cuts chipping away at its lending margins [2]. Despite these challenges, JP Morgan remains confident in Barclays' ability to maintain its current momentum.

The latest forecast from JP Morgan suggests that Barclays shares could have some upward movement in the coming 12 months, with the target price of 500p indicating a potential gain of 24% from the current share price [2]. This bullish outlook aligns with the overall positive sentiment among institutional analysts, who generally agree that Barclays shares still have room for growth.

References:
[1] https://www.livemint.com/companies/news/barclays-ceo-urges-uk-to-consider-investment-over-fresh-bank-tax-11757357324524.html
[2] https://www.fool.co.uk/2025/09/08/didnt-buy-barclays-shares-heres-how-much-money-investors-have-made-in-2025/