Barclays PLC's shares gained Monday after a Goldman Sachs analyst raised his rating on the British bank before potential business changes early next year.
THE SPARK: Goldman Sachs analyst Frederik Thomasen lifted Barclays to "Buy" from "Neutral," citing possible gains stemming from a strategy review expected in February.
The analyst said that Barclays shares could rise if the bank unveils a plan that would lead to bigger returns. Such a plan could include job cuts and other attempts to trim costs at its investment bank, and selling or winding down some operations in Europe.
An email requesting comment from Barclays was not immediately returned.
THE BIG PICTURE: Barclays has a new CEO, Anthony Jenkins, who was appointed in August following revelations that some Barclays employees had attempted to manipulate the London interbank offered rate (LIBOR), a key global financial index. A new chairman took over this fall.
Changes to the bank's structure may come as the company is dealing with regulatory probes and litigation, and Thomasen said recent earnings have fallen short of targets.
SHARE ACTION: Shares on the New York Stock Exchange jumped 87 cents, or 5.8 percent, to $15.85 by afternoon in New York. Its U.S.-traded stock is nearing the top of its 52-week trading range of $9.20 to $16.41.