1116 GMT - Barclays has reduced further upside due to higher competition for U.K. deposits and potentially increased cost pressures from 2027, BofA Securities analysts say. A higher U.S. interest-rate environment in the near term could also stifle fee income in the U.S. consumer business, the analysts add. "While we still appreciate the US capital markets optionality, particularly in the context of an AI-related capex cycle, [investment banking] incomes are lumpier by nature, and a higher IB revenue would likely drive costs higher as well," BofA says. BofA lowers its net interest income expectations by 1% for 2027 and 2028. It downgrades its recommendation for Barclays to neutral from buy and cuts the price target to 580 pence from 615 pence. Shares are down 3.5%.