Barclays downgrades NatWest to 'equalweight', shares slump

(Sharecast News) - NatWest was under the cosh on Wednesday after Barclays downgraded its stance on the bank to 'equalweight' from 'overweight'. Barclays, which lifted its price target on the stock to 120p from 100p, said NatWest still offers the potential for sector-leading shareholder returns at an undemanding price. However, a "pause for breath" is needed following a strong run in the share price since late 2023 lows.

Barclays said it expects Lloyds to deliver sector-beating earnings per share growth of 70% by 2028, twice the sector average and around 20% ahead of consensus expectations.

It also expects Lloyds' improving outlook to come into sharper focus at the strategy update this summer.

At 1235 GMT, the shares were down 3% at 641p.