CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Lloyds share price: what’s the outlook for 2020?

The UK banking environment is still mired by a myriad of headwinds, but analysts from Morgan Stanley remain optimistic about Lloyds share price 2020.

UK bank stocks have seen significant volatility over the last 12 months, with the market reacting to rising trade tensions, a slowdown in the global economy and of course Brexit.

Lloyds saw its share price fall to 48p a share in August only to climb some 20% since then to trade at 58p a share as of 13:05 GMT on Tuesday.

The stock owes its late flurry in 2019 to the Conservative Party securing a decisive victory in the UK general election, ensuring Brexit will be delivered and bringing an end to three years of uncertainty over how, when and even if the UK will leave the EU.

Looking to trade Lloyds and other UK bank stocks? Open a live or demo account with IG.

Expect more volatility in 2020 for UK bank stocks

Lloyds and its UK peers will likely see more stock market volatility in 2020, with the Brexit process yet to be concluded and likely to take another 12 months to complete.

In 2020, Lloyds will also have to contend with many of the same challenges that plagued it and its rivals last year, with low interest rates and a highly competitive mortgage market likely to hinder its performance.

Morgan Stanley optimistic about Lloyds share price outlook

Despite the challenges Lloyds faces this year, analysts from Morgan Stanley remain upbeat about the stock, with the US-based investment bank reiterating its ‘overweight’ rating and issuing a 75p price target in January.

Based on Lloyds trading at 58p a share, analysts at Morgan Stanley believe the stock has a potential upside of 29.3%.

You can go long or short Lloyds with IG using derivatives like CFDs.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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