MARKET TALK: Royal Bank of Scotland Cuts Barclays Target

1st Jul 2010 09:19

0819 GMT [Dow Jones] Royal Bank of Scotland lowers Barclays (BARC.LN) target to 410p from 420p to reflect EPS cuts. Cuts '10 EPS forecast by 26% to 24.6p, '11 by 11% to 39.3p. Aside from the cyclical weakness in BarCap and the group's Spanish operations, the forecasts also capture the UK bank levy, lower corporate tax rates and a GBP1B gain on own debt from the wider credit spread in 2Q FY '10. Although the company's disappointing underlying group performance in 2Q '10 overshadowed Wednesday's Global Retail Banking Seminar, the brokerage does not think near-term trends reflect normalized levels. Keeps at buy. Shares -2.5% at 264p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 01, 2010 04:19 ET (08:19 GMT)