Right now, the average analyst 12-month share price target for Barclays (LSE: BARC) is 572p. That’s roughly 13% above the current share price.
However, I wouldn’t be surprised to see the consensus price target rise in the coming weeks. Because Barclays just posted a strong set of results for Q2 and the first half of 2026 and increased its 2026 guidance.
Unpacking Barclays’ H1 results
Given the strong earnings from the large US banks – which are diversified in nature like Barclays is – I was expecting these results to be good. And they didn’t disappoint.
For the second quarter:
- Profit before tax was £3.3bn, up 31% year on year.
- Investment Bank revenue was up 20% (with banking fees and underwriting income up 32%).
- Equities trading income was up 45%.
- Private Bank and Wealth Management revenue was up 5%.
Meanwhile, for the first half of 2026:
- Profit before tax was £6.1bn, up 17% and ahead of expectations.
- Earnings per share was 30.7p, up 24%.
- Return on average tangible shareholders’ equity was 14.8% versus 13.2% a year earlier.
On the back of this performance, the company announced a dividend of 5.9p per share for H1, up from 3p for H1 2025. It also announced a £1bn share buyback for Q2.
Looking ahead, the bank raised its 2026 group income target to approximately £31.5bn. Previous guidance was £31bn.
Trading at an attractive valuation
Given these strong results, and the increase to guidance, I remain bullish on Barclays shares. I believe they’re worth considering for an ISA or SIPP.
What I like is the fact that the company has many ways to make money. This isn’t just a play on lending; Barclays can make money through investment banking, trading activity, and wealth management as well.
As for the valuation, it remains attractive. Before today’s increase to guidance, the consensus earnings per share forecast for 2026 was 53p.
That equates to a price-to-earnings (P/E) ratio of less than 10. That’s well below the P/E ratios on most of the big US banks.
There’s also a decent dividend on offer. At present, the yield is around 3%.
I’ll point out that I’m encouraged by today’s 97% increase in the H1 dividend payout. That increase suggests that management is confident about the future.
Further gains ahead?
Of course, there are no guarantees that the shares – which are up about 40% over the last year – will continue to perform well. If the global economy starts to weaken, bank stocks could come under pressure.
This scenario could impact lending activity and lead to a rise in loan defaults. It could also impact investment banking activity.
Another risk is additional taxes. With a new prime minister and chancellor in the UK, we can’t rule out some kind of new bank tax.
We also can’t rule out fines in the future. This is a bank with a long history of incurring conduct fines.
Overall though, I like the set-up. I see the potential for further share price gains over the next 12 months and think it’s worth considering.
Should you invest £5,000 in Barclays Plc right now?
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Edward Sheldon does not hold any positions in the companies mentioned
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