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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?

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

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This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.

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