It’s no secret that FTSE shares are notoriously cheap compared to other stock markets. And even after surging by double digits last year, analysts at Barclays are still telling investors to double down and keep buying.
So what’s driving this bullish stance? And which stocks should investors be considering for their portfolios today?
Why is Barclays so bullish?
The investment bank started explicitly recommending investors to go overweight on both UK shares and European ones as well towards the end of 2025. And the three central pillars to their investment thesis are:
- Cheap valuations compared to US equivalents.
- Earnings growth is on track to accelerate, driven by stronger operating leverage and fading foreign exchange headwinds.
- The artificial intelligence (AI) supercycle is maturing with capital concentrated in the US tech sector starting to rotate into new markets.
Low prices, stronger earnings, and capital rotation definitely set the stage for a more impressive stock market performance in 2026. However, while Barclays is optimistic, the bank’s flagged several key risks that could undermine returns.
The list of primary concerns includes geopolitical and trade escalation, citing the conflict in the Middle East and the US tariff escalation. Also on the list is the risk of bond vigilantes driving up the yield on UK gilts which, in turn, compresses stock market valuations.
So with all that in mind, which FTSE shares does Barclays recommend UK investors take advantage of today?
Opportunities at a discount
Barclays has a lot of active stock recommendations in 2026. But just last month, it upgraded its conviction for Molten Ventures (LSE:GROW), placing a 575p share price target – almost 24% higher than where the FTSE share is trading today.
So what does this business do?
Molten Ventures is quite an unusual investment compared to most UK stocks. The company’s essentially a publicly-listed venture capital group that focuses exclusively on early-stage European technology companies.
It’s effectively a way for everyday investors to indirectly invest in private companies. And the portfolio already contains some fairly big names, including digital bank Revolut.
Following its investor day in February, management showcased several investments approaching the exit-readiness stage, having already delivered some exits totalling over £100m.
Top that off with the fact that Molten Ventures’ shares trade at a significant discount to their net asset value, and shareholders could soon see an upward surge in the short-to-medium term.
So is this a no-brainer?
What to watch
With the stock trading at a discount, it’s quite tempting to start snapping up shares. However, it’s important to highlight some crucial risks when investing in venture capital groups.
The most apparent risk is that the timelines for exits are a bit of a mystery. And with the financial markets currently in a risk-off mindset, IPOs or trade sales may end up getting delayed.
But even if that doesn’t happen, and Molten Ventures sees a big payday, management then has the challenge of finding new early-stage businesses to support – investments which are notoriously high risk.
Nevertheless, for investors with a higher risk tolerance seeking to diversify their portfolios into the private sector at a substantial discount, Molten Ventures could indeed be worth mulling over.
