Jefferies upgrades Lloyds to buy
Jefferies raised its rating on Lloyds Banking Group to buy from hold and upped the target price to 102p from 88p Tuesday, saying that the earnings downgrade cycle has troughed for the bank.
Banks
4,215.47
16:54 03/05/24
0.08%
3.55
FTSE 100
8,213.49
16:59 03/05/24
n/a
n/a
FTSE 350
4,515.50
16:54 03/05/24
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FTSE All-Share
4,469.09
17:14 03/05/24
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Lloyds Banking Group
52.18p
16:49 03/05/24
0.23%
0.12p
“Investors are looking to invest in shares of banks which have de-risked, are returning capital, have positive earnings momentum and are easily understood,” said Jefferies, noting that Lloyds is moving in the right direction on all counts.
Jefferies estimates that Lloyds can achieve a 15% return on required tangible equity by 2017 and this, combined with £6 billion of excess capital generates the new target price.
Lloyds shares were up 1% at 83.69p at 10:20 BST.