Deutsche Bank Sees These UK Banking Stocks as a Buy

Deutsche Bank is bullish on UK banking stocks, with analysts at the firm initiating NatWest (LON: NWG), Barclays (LON: BARC), and Lloyds (LON: LLOY) with Buy ratings in recent notes. 

NatWest was given a 345p per share price target by Deutsche Bank. The bank's analysts believe that the company's margin will start to improve in the second half of 2024, painting an optimistic picture for potential investors. 

They highlighted NatWest's tailwind from the structural hedge, which they believe will more than offset headwinds, including base rate cuts and mortgage refinancing.

According to data compiled by TradingView, analysts are mostly bullish on NatWest shares, with 12 out of 19 assigning the stock a Buy rating (6 Hold and 1 Sell). 

Meanwhile, Barclays was started with a 270p price target. Deutsche Bank's analysts see “considerable risk asymmetry” in Barclays' shares, noting note that downside protection is afforded by a net asset value that should grow to 460p by the end of 2026, while upside potential relates to achieving anything close to group targets.

Overall, analysts are primarily bullish on Barclays' outlook, with 13 having a Buy rating on the stock (5 Hold and 1 Sell).

Finally, Deutsche Bank sees Lloyds Banking shares climbing to 61p. Analysts at the firm expect Lloyds' margins to stabilise by the third quarter, highlighting the tailwind from the structural hedge offsetting residual headwinds, including base rate cuts.

Analysts covering Lloyds are also mostly positive on the stock, with 11 giving the stock a Buy rating (6 Hold and 3 Sell).