(Bloomberg) -- For the first time in almost six years, analysts at Morgan Stanley recommend buying shares of Barclays Plc.
Alvaro Serrano and colleagues upgraded the stock to overweight from equalweight on Tuesday, writing in a note to clients that the British lender’s growth in US credit cards is under-appreciated. Sentiment around a peak in interest rates is also benefiting Barclays’ M&A business, Morgan Stanley said.
Barclays was among the best-performing stocks on a declining Stoxx Europe 600 Index on Tuesday, gaining 2.9% to 158.12 pence a share as of 11:04 a.m. UK time.
Morgan Stanley downgraded Barclays to equalweight from overweight on Jan. 9, 2018, according to data compiled by Bloomberg. Since then, the stock declined 23% through yesterday’s close versus a 15% decline for the Stoxx 600 Banks Index.
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