With a customer base of 30 million, Lloyds Banking Group PLC (GB:LLOY) ranks as one of the top four banks in the UK. In 2022, the bank had a robust performance, achieving record profits. Looking to the future, analysts hold an optimistic view of the stock and anticipate a potential increase of around 43% from its current level.
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Recent Ratings
Over the last three months, the stock has lost around 10% in trading. Furthermore, there has been significant volatility in the share price. Analysts believe the shares might offer an exceptional buying opportunity, considering the company’s ability to withstand uncertain macroeconomic conditions and its attractive dividends.
Six days ago, analyst Alvaro Serrano from Morgan Stanley confirmed his Hold rating on the stock, predicting an upside of 38.7% in the share price. He has reduced the price target from 63p to 60p.
Seven days ago, Bank of America Securities’ analyst Rohith Chandrarajan kept his Buy recommendation on the stock. His price forecast of 58.0p implies a growth of 34% in the share price.
On the contrary, analyst Raul Sinha from J.P. Morgan downgraded his rating from Hold to Sell 16 days ago. He also reduced his price target from 56p to 42p, forecasting a downside of almost 3% in the current trading price. He anticipates a further deterioration in earnings for UK banks, leading to increased “risks in capital return and asset quality.” He maintains a cautious stance and believes that domestic UK banks will exhibit weaker performance compared to the broader sector.
Is Lloyds Share Price a Buy?
LLOY stock has a Moderate Buy rating backed by seven Buy, four Hold, and one Sell recommendations.
The average price prediction for a 12-month period is 62p, which implies a 40% growth from the current price level.
Ending Thoughts
Analysts view Lloyds as an effective gauge for assessing the general well-being of the UK consumer and its smaller enterprises. Analysts are also impressed by the bank’s ability to demonstrate resilience, given the mounting cost pressures originating from various factors.
