Can the Lloyds share price keep soaring?
Following the UK election result, which saw the Conservative Party secure a landslide victory, Lloyds share price soared. But will the stock continue to make gains?
In the wake of the Conservative Party securing a landslide victory on Friday, Lloyds share price soared 20% to 73p in early morning trading.
However, as Friday’s session continued, the bank’s early gains waned slightly, with the stock closing at 64p a share and opening a touch higher this week at 66p as of 13:45 GMT on Monday.
With the new year fast approaching, Lloyds share price is set to end 2019 on a high, with the stock up more than 30% since the beginning of January. But can the stock continue to soar higher?
Lloyds comes close to hitting Société Générale target price
Analysts at Société Générale have remained upbeat about Lloyds, with the bank reiterating its ‘buy’ rating for the stock and issuing a target price of 76p a share in November.
After the UK election, Lloyds share price soared close to that target, but narrowly missed breaking through that level.
It will be interesting to see how analysts update their guidance for Lloyds and other UK bank stocks, with a Conservative majority in parliament ensuring Brexit gets done on January 31.
Lloyds dodges Labour restrictions after Tory victory
Reduced uncertainty over Brexit aside, Lloyds stands to benefit from the Tories victory by dodging Jeremey Corbyn’s proposals for the banking sector, which included the introduction of state-backed lending banks and a restriction on branch closures.
Under a Conservative government, investors are also expecting the UK Treasury to accelerate the sell-off of its remaining stakes in Lloyds and Royal Bank of Scotland.
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.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.