What is in store for the Barclays share price over the coming months?

Barclays Share Price

The Barclays share price (LON:BARC) saw a strong resurgence from the end of July through to August. This followed a sharp dip to a multi-month low of 157p per share. August was a broadly positive month for the banking sector, as a number of US banks reported strong earnings figures.

Barclays also confirmed towards the end of the month that its US arm will purchase a $3.8bn credit card portfolio co-branded with The Gap, as the FTSE 100 bank continues its efforts to grow within America. As a result, along with a range of other factors of course, the Barclays share price stands at 181.28p, up 26.31% since the beginning of the year. This article will examine where it could be headed during September, the remainder of 2021 and beyond.

Analysts

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While it is impossible to know what the future holds, analysts are equipped with resources to allow more informed forecasts. As one of the largest companies in the UK, a number of analysts keep a close eye on the Barclays share price. Stockopedia reported that out of 12 analysts, six gave ‘Buy’ recommendations while five said to ‘Hold’ and one recommended selling shares in the bank.

Risks

Risks can come from a number of angles. One key threat to a potential upsurge in the Barclays share price is the ongoing uncertainty over the pandemic and the Delta variant.

“The outlook remains uncertain and subject to change depending on the evolution and persistence of the COVID-19 pandemic,” Barclays warned.

The economy remains a low-interest-rate environment which is proving to be challenging for the banks. The banking sector’s profitability generally rises with interest rate hikes. Institutions in the banking sector, such as retail banks, commercial banks, investment banks, insurance companies, and brokerages have larger cash holdings due to customer balances and business activities. Therefore this could act as a drag on the Barclays share price in the coming months.

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