Barclays is a good pick as the U.S. consumer business receives fair recognition and investment banking picks up, according to Morgan Stanley.
Analyst Alvaro Serrano upgraded shares of the bank, which trade in London, to overweight from equal weight.
The bank's U.S.-listed shares trade under the ticker BCS.
Serrano said Barclays is "quietly gaining more scale" in the U.S. credit card business, which can improve its profitability gap compared with competitors.
While the cards and investment banking business have low multiples, Serrano said that the earnings upgrades will ultimately push the stock higher.
Persons:
Morgan Stanley, Alvaro Serrano, Serrano, — CNBC's Michael Bloom
Organizations:
Barclays
Locations:
London, U.S, United Kingdom