AlphaValue/Baader Europe Downgrades Barclays Rating, Price Target Amid Peer Valuation Shift

01:52 AM EDT, 09/02/2026 (MT Newswires) -- AlphaValue/Baader Europe lowered its rating and price target for Barclays (BARC.L), citing a peer group adjustment for the British bank that removed stronger competitors from the research firm's valuation metrics. "We have decided to revisit our complacent valuation to align our recommendation with our fundamental sentiment that the stock should continue to underperform the sector, as it shows a poor risk-reward (lower-than-average profitability potential and higher-than-average cost of capital). This has translated into a reduction of our target price fully driven by comparables. Indeed, we have removed HSBC [HSBA.L] and UBS [UBSG.SW] from the peer group, which inflated the valuation metrics due to their structurally stronger profitability and lower cost of capital," analysts said Tuesday. "We have also decided not to treat the share buybacks as dividends, which is highly detrimental as BARC's cash dividend payout is significantly below the sector's average," the research firm added. Accordingly, AlphaValue/Baader Europe updated the stock's rating to reduce from add and cut its price target by 21.7% to 5.06 pounds sterling.