Are Lloyds shares worth buying now?

Analysts believe that Lloyds shares, which are up some 25% this year, can rise another 19% in the next 12 months.

  • Lloyds (LON: LLOY) share price closed over 4% lower on Monday (20 September 2021)
  • The stock’s decline reflected the overall market’s bearishness, which also dragged down the FTSE 100 by over 100 points
  • Analysts have a consensus rating of ‘buy’ on LLOY shares
  • Feeling bullish or bearish about Lloyds shares? Open an account with us to go long or short on the stock today.

Lloyds stock price: what’s the latest ?

Lloyds Banking Group shares fell some 4.2% on Monday, following in the footsteps of the FTSE 100 index on what some have termed as ‘Panic Monday’.

The Footsie retreated as much as 2% after mining and Asia-focused stocks were dragged down by concerns over rising gas prices and Chinese developer Evergrande’s emerging debt problems.

Last week, shares of the UK’s third largest bank hit a one-month peak of 45.24 pence, as UK authorities weigh the possibility of relaxing ‘ring-fencing’ banking rules that force banks to separate their retail banking divisions from the rest of their business.

The rules were introduced in the aftermath of the 2008 global financial crisis as a way of protecting customers’ assets should a bank run into cash flow issues.

LLOY’s share price is up by nearly 25% year-to-date, hitting a peak of 50p a share in June 2021.

How do analysts view LLOY?

Across the board, the stock has a consensus rating of ‘buy’ and price target of 51.33p, according to the latest analyst data published by MarketBeat.

The price target equates to a potential 19% upside from LLOY’s last traded price of 43.14p.

Last week, the Lloyds stock received a ‘buy’ rating and price target upgrade to 60p (from 57p) from Deutsche Bank, on the expectation for improved performance under new chief executive Charlie Nunn.

‘We expect strong deposit growth; rebounding consumer credit; and rising interest rates to lead to substantial growth in UK net interest income in the next two years which is not captured in consensus nor current valuations,’ analyst Robert Noble said in a note.

‘We are positive on domestic exposure but our preference is Lloyds where we are 15% above consensus and it trades at 6.6 times 2023E P/E with 10% yield,’ he added.

Meanwhile, Barclays had kept an ‘overweight’ call and 62p price target in their latest thesis, as analysts saw ‘significant value’ in LLOY shares.

‘We see Lloyds as best placed to deliver double-digit RoTE (return on tangible equity), consensus-beating earnings, whilst also benefitting from likely write-backs,’ Barclays analysts noted.

Keen to take a position on Lloyds shares?

Learn how you can buy, sell and short Lloyds shares with IG.

Go short and long with CFDs on Lloyds and 16,000+ shares with the Singapore’s No.1 platform.* Learn more about trading shares with us, or open an account to get started today.

*Based on the Investment Trends 2018 Singapore CFD & FX Report based on a survey of over 4,500 traders and investors. Awarded the Best Online Trading Platform by Influential Brands in 2020

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.