Broker snap: All eyes on strategy at Barclays

9th Feb 2011 11:46

How Barclays' management addresses the group's challenges in its 2010 results will be critical to convince the market of its ability to make attractive returns, according to Japanese broker Nomura."With a new chief executive officer presenting, any comments made around initiatives to improve group returns will be an important indication for the shares. In our view, the market will likely be looking for mention of specific plans rather than generic targets and we remain cautious on any optimistic expectations of fast step change," says analyst Robert Law.The broker remains more cautious than consensus in regards to group pre-tax profit, expecting £5.1bn for 2010 (against £5.8bn) and £6.8bn for 2011 (against £7.6bn). With revenues at the group's key driver, Barclays Capital, expected to be weak, Nomura believes that Lloyds is better placed to achieve attractive returns and gives Barclays a 'neutral' rating and target price of 300p.