BCS - Barclays: Still At 0.5x Tangible Book But Rerating Quickly
2024-03-11 04:45:03 ET
Summary
- Barclays' sustainable performance has improved massively, but its share price has not reflected this yet. The recent strategic update is beginning to change the narrative.
- The Company is trading at a low valuation compared to its tangible book value, despite generating strong returns on tangible equity.
- BCS is expected to return ~40% of its market cap to shareholders in the form of dividends and buybacks.
- I expect Barclays to compound in the next couple of years and double the share price by the end of 2026.
Barclays: Still At 0.5x Tangible Book, But Rerating QuicklyIn the short run, the market is a voting machine but in the long run, it is a weighing machine