JP Morgan’s (NYSE: JPM) brokerage unit upgraded Barclays Capital (NYSE: BCS) to a “neutral” rating from a “sell” rating on Friday.
The megabank’s brokerage division said that despite having disappointing third-quarter revenues and a downgrade on its predicted fourth-quarter revenues from its investment bank to 3.3 billion GBP, down from 4.6 billion GBP, it has raised its overall 2009 estimates by 10% to reflect gains from its Barclays Global Investments. The bank has also benefited from stronger than expected margins on its Barclaycard unit.
A research note from JP Morgan’s analysts said that “Barclays is our preferred name within the U.K. domestics, but HSBC remains our U.K. top pick and one of our preferred names in Europe.”
