Lloyds Banking downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Raul Sinha downgraded Lloyds Banking to Neutral from Overweight with a 58 GBp price target. The analyst reshuffled preferences on U.K. bank stocks heading into 2023, saying risks look evenly balanced for the sector, with concerns about net interest margins peaking in the second half of the year, offset by defensive attractions for larger U.K. banks. Barclays has the most favorable risk/reward among U.K. domestic lenders and is now the top pick, Sinha tells investors in a research note. The analyst believes consensus estimates for Lloyds are more optimistic than the bank’s estimates.