Lloyds Banking Group Outlook Brightens As Analysts Upgrade Stock
The convergence of price targets around the 90p mark suggests that while analysts are more positive about Lloyds’ prospects, expectations for dramatic outperformance remain measured.
Improving fundamentals support analyst optimism
Beyond the rankings, the optimism reflects improving fundamentals. Previously, concerns had mounted over motor finance liabilities – Lloyds’ exposure through Black Horse being the most scrutinised – but stronger-than-expected second-quarter (Q2) results and a recovery in net interest income have begun to ease that pressure.
The bank’s return on tangible equity remains elevated relative to its pre-Covid-19 pandemic levels, and net interest margin is forecast to rebound toward 2.9% by year-end,…
