5 Best European Bank Stocks to Buy According to Hedge Funds

​2. Barclays PLC (NYSE:BCS)

Number of Hedge Fund Holders: 29

Barclays PLC (NYSE:BCS) is one of the Best European Bank Stocks to Buy According to Hedge Funds. On May 6, Jefferies reiterated a Buy rating on Barclays PLC (NYSE:BCS) with a price target of p590.

​The rating comes after the company on April 28 posted fiscal first quarter 2026 results. According to a report by Reuters published on the same day, the bank posted profit before tax of 2.8 billion pounds, slightly up from £2.7 billion the year prior, broadly meeting analyst expectations. However, the results were overshadowed by two notable charges, including a 228 million pound provision tied to the collapse of MFS, a London-based property lender, and an additional 100 million pound set aside for compensation related to a UK car finance mis-selling scandal.

​The report also highlighted that the bank’s share buyback of 500 million pounds also disappointed, falling short of the 614 million pounds that analysts had anticipated. On the bright side, the investment bank performed solidly with income rising 4% year-on-year to 4 billion pounds, slightly ahead of forecasts. Moreover, the equities trading revenue surged 23%, and fixed income rose by 8%.

Despite this, Barclays lagged behind its Wall Street peers across most metrics. CEO C.S. Venkatakrishnan acknowledged the widening competitive gap created by US deregulation under President Trump; the CEO warned of growing “competitive friction” that European banks must work harder to overcome.

​Headquartered in London, Barclays PLC (NYSE:BCS) is a bank holding company that provides credit cards, retail banking, wealth management, and corporate and investment banking services.