Source: Sharecast
Barclays kept its price target on NatWest unchanged at 700p.
"While we continue to see sector-leading shareholder returns potential (through book growth and dividends), at an undemanding 8x forward PE, we pause for breath following what has ultimately been a strong run in the shares since late-23 lows (up 280% versus Lloyds 150%) as we wait for consensus to catch up on capital," it said.
In a note on the UK domestic banking sector, Barclays lifted its price target on 'overweight' rated Lloyds to 120p from 100p.
"We forecast sector-busting EPS growth of 70% by 2028e, 2x the sector average and circa 20% ahead of consensus, and see compelling valuation at less than 7x '28e PE (versus a European banks average of more than 9x) or 1.3x forward TNAV for a sector-leading 20% return on tangible equity," it said.
"We expect this improving outlook to come into sharper focus at this summer's strategy update, alongside a potential move to half-yearly buybacks."
At 1255 GMT, NatWest shares were down 3.1% at 640p, while Lloyds was 0.8% lower at 99.50p.