Using the TipRanks database, we have identified two UK stocks, banking giant Barclays PLC (GB:BARC) and oil and gas company Shell (GB:SHEL), that have been rated as Strong Buy by analysts. TipRanks’ “Strong Buy” rating serves as a valuable indicator for identifying stocks poised for long-term returns. BARC stock presents a share price growth opportunity of around 28%, whereas SHEL demonstrates an upside potential of around 21%.
Let’s have a look at the details.
Barclays PLC
Barclays ranks among the top four banks in the UK, serving approximately 48 million customers globally. Year-to-date, the stock has grown by 18%.
Last month, the bank announced its annual results for 2023 with a 6% decline in its profits to £6.6 billion, which was in line with analysts’ forecasts. Net attributable profit for the full year stood at £4.27 billion on a statutory basis, missing analysts’ consensus of £4.59 billion. The bottom line was affected by provisions for potential bad loans.
The highlight of the results was the launch of a strategic overhaul plan aimed at achieving cost savings of £2 billion by 2026. This initiative seeks to reignite share price growth, while improving overall profitability for the bank. Additionally, Barclays intends to allocate a minimum of £10 billion to shareholders between 2024 and 2026 through dividends and share buybacks.
Is Barclays a Good Share to Buy?
Following the release of the results, analysts reaffirmed their confidence in the stock’s price outlook, with eight analysts confirming their Buy ratings. Most recently, RBC Capital analyst Benjamin Toms reiterated his Buy rating on the stock, forecasting a growth rate of 39%.
On TipRanks, BARC stock has a Strong Buy rating, based on eight Buy and one Sell recommendations. The Barclays share price target is 237.71p, which is 28.5% above the current trading levels.
Shell
Based in the UK, Shell is an oil and gas company providing a wide range of energy products, including fuels, oil, liquefied petroleum gas (LPG), lubricants, etc.
In the last year, the company’s stock experienced some turbulence, owing to volatile energy prices due to global geopolitical drama, environmental regulations, and demand and supply dynamics, among other challenges. Nonetheless, analysts believe investment activity in the energy sector will remain robust in 2024. The stock gained roughly 9% over the past 12 months.
In 2023, Shell’s profit stood at $28 billion, marking a 30% decline from the previous year’s record, attributed to cooling energy prices and demand. Despite this, the company raised its Q4 dividend by 4% from the previous quarter to $0.344 per share, marking a 20% annual increase. This marks the seventh increase since the dividend cut it enacted following the COVID-19 pandemic.
As part of the energy sector transformation, Shell is targeting achieving net-zero emissions by 2050. The company is making significant investments in renewable energy, biofuels, hydrogen, carbon capture, and nature-based solutions.
Are Shell Shares a Good Buy Now?
Recently, analyst Biraj Borkhataria from RBC Capital recommended a Buy rating on the stock, predicting a 14% upside. Borkhataria was impressed with the company’s strong operational momentum and believes the LNG division remains a strong contributor to cash generation.
According to TipRanks consensus, SHEL stock has received 10 Buy and two Hold recommendations. The Shell share price forecast is 3,196.04p, implying a growth of almost 22% over the current price level.
