Down 10% in a month with a P/E of just 8.5! But this broker says Barclays shares are heading for 620p

Barclays shares are down 10% in a month and 16% over three months, even after gaining about 175% over five years. The article points to a mix of drivers: higher interest rates previously helped, but investors now worry about rising bond yields, fears of an economic slowdown, and potential UK Budget tax hikes for banks. It also flags rising costs, including an expected additional £500 million of second-half expenditure, and increased loan impairments. Valuation is the core argument: Barclays trades at a trailing P/E of 10 and a forward P/E of 8.5. The company targets more than £15 billion in capital distributions between 2026 and 2028, building on a plan to return at least £10 billion between 2024 and 2026. Broker targets cited include JP Morgan Cazenove raising to 620p and Berenberg also targeting 620p, while Citigroup kept a neutral 500p view.