Royal Bank of Scotland Group Plc was raised to “add” by Dresdner Kleinwort analysts who say it had “dealt with” its weakened capital base and was capable of absorbing a UK economic decline, Reuters reports.
Barclays Plc was raised to “hold” from “reduce” by the London-based analysts in a research note to clients, after the bank said it may seek selected investors to help it raise capital.
“We still would prefer to try bottom-fishing at RBS as it has dealt with its capital base and credit assets, is more diversified and has cost cutting potential,” says the analysts led by James Invine, who raised RBS’s stock from “reduce.”