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Home Markets Markets RBS shares to see steady gains says Barclays
RBS shares to see steady gains says Barclays PDF Print E-mail
Written by Will Peters   
Friday, 30 July 2010 13:44
RBS is undervalued according to Barclays who have set a new target price on the state owned bank.

RBS (LON:RBS) is considered undervalued by the equity analyst team at Barclays Capital who have set a new target price of 70 on the stock.

RBS therefore has a potential upside of 40.11% from this morning's opening share price at 49.96.

RBS shares are lower by 0.72% at 49.60 on the FTSE 100 in the afternoon session on the back of week US GDP data just released.

Also getting a look in from Barclays today was fellow part state-owned bank Lloyds Banking Group.

The analyst team at Barclays Capital set a target price of 65 on Lloyds Banking Group.

This is 53.67% lower than today's opening price of 68.91.

Lloyds Baking Group has had a choppy week on the FTSE 100. Shares are higher 0.29% this afternoon in the immediate wake of US GDP data - the main economic news event of the day.

European shares extended losses on Friday afternoon after a reading on US second-quarter GDP broadly matched forecasts with growth slowing to 2.4% from 2.7% recorded in the first quarter.

Construction firms were the worst performers, with Lafarge down 4% after reporting earnings.

The FTSE 100 index declined 0.7% to 5,276.19, the German DAX index declined 0.7% to 6,092.76 and the French CAC-40 index lost 0.7% to 3,626.20.

US recovery loses traction


The recovery lost momentum in the spring as growth slowed to a 2.4 percent pace, its most sluggish showing in nearly a year and too weak to drive down unemployment.

Consumers spent less, companies slowed their restocking of shelves and the nation's trade deficit dragged more on the economy in the April-to-June quarter. In a separate report, the Commerce Department said the recession was deeper than previously estimated.

Together, the reports raise doubts about whether employers will hire enough and consumers will spend enough to invigorate the economy. As unemployment remains near double digits, Congress could feel pressure to pass more stimulus measures to speed the recovery.

So far, Republicans and some Democrats have blocked additional spending because of their concerns about the size of the deficit.
Last Updated ( Friday, 30 July 2010 13:45 )