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.
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%.
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