At 536p, the Barclays (LSE: BARC) share price is now at its highest since November 2007, almost two decades ago.
That’s an astonishing figure and reflects the damage done by the financial crisis, which saw the share price crash from 665p in January 2007 to less than a pound in two years.
Barclays shares bumped along the bottom for an age before finally getting their mojo back three years ago. They’ve rocketed 250% since August 2023, with dividends on top. So what’s been driving them?
Like all the banks, the Barclays bottom line has been boosted by higher interest rates, which allows it to widen net interest margins, the difference between what it pays savers and charges borrowers. Management has also integrated the acquisition of Tesco Bank nicely, while structural hedge income has further driven revenues.
Just look at these profits
Barclays also posted a 10.5% return on tangible equity (RoTE) figure in 2024 and 11.3% in 2025, boosted by record investment banking income. It’s aiming for 14% by 2028. Pre-tax group profits have been flying, as this table shows:
- 2025 – £9.14bn
- 2024 – £8.11bn
- 2023 – £6.56bn
- 2022 – £7.01bn
- 2021 – £8.41bn
The board has also been rewarding investors with both dividends and share buybacks, as part of a multi-year plan to return more than £15bn to shareholders by 2028.
Despite all that, the shares still look decent value with a forward price-to-earnings ratio of just 10. The 2.88% forecast yield for 2026 is a little low, but that’s because the board plans to reward investors primarily through share buybacks. That’s worth bearing in mind if dividends are your priority. The anticipated yield for 2027 is 3.56%, so it’s not too meagre.
Inevitably, there are risks. The volatile oil price, uncertain global economy, and concerns over a potential AI bubble are hanging over most stocks right now, including Barclays. It’s directly exposed to global volatility through its investment banking division, which can be highly cyclical. Revenue from that source depends on activities such as IPOs and corporate mergers and acquisitions. The UK government could increase the bank windfall tax. So, what do the experts say?
The 18 analysts offering one-year share price forecasts produce a consensus target of 571p. If correct, that would see the shares climb a modest 6.6% from today. That’s obviously a lot slower than recent growth.
Of the 20 analysts giving stock ratings in the past three months, most remain highly positive:
- Strong Buy:Â 14
- Buy:Â 1
- Hold: 4
- Sell: 1
- Strong Sell: 0
I’ve gone on a FTSE 100 bank buying spree recently, purchasing both HSBC and NatWest in May and June. I didn’t buy Barclays. That’s not a reflection on Barclays — I nabbed those two because they’d published poorly received results and their shares fell 5% on the day. So I bought the dip. They’ve recovered rather nicely.
One thing worth mentioning: all the big banks have done similarly well lately. So it’s a sector upswing. The fun may slow from here, but I still think Barclay shares are well worth considering today.
Should you invest £5,000 in Barclays Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?
Harvey Jones owns shares in HSBC Holdings and NatWest Group.
The post After it rocketed to a 19-year high, here’s what the experts say about the Barclays share price outlook… appeared first on The Twelfth Magpie.
More reading
- By mid-2027, analysts expect Barclays’ share price to hit…
- At a 5-year high, here’s where the experts think the Barclays share price will go next…
- By mid-2027, analysts expect £5,000 in Barclays shares to be worth…
- At almost 20-year highs, here’s where the experts think the Barclays share price could go from here
- Are Barclays shares on track for another 200%+ gain in the coming 2 years?
0 Comments