In a report released today, Alvaro Serrano from Morgan Stanley reiterated a Buy rating on Lloyds Banking, with a price target of p125.00.
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Alvaro Serrano has given his Buy rating due to a combination of factors related to Lloyds’ solid operating performance and improved income outlook. The bank delivered pre‑provision profit broadly in line with expectations, with slightly stronger net interest income and good cost control offsetting softer other income, while credit provisions came in materially lower than anticipated, underscoring benign asset quality.
He also highlights that management has raised its net interest income guidance, mainly supported by a larger and more profitable hedge position, which he still views as conservative and offering further upside. With capital ratios stable despite robust loan growth, tangible net asset value progressing, and a price target implying around 27% upside from the current share price, Serrano sees an attractive risk‑reward profile that justifies maintaining a Buy recommendation.
According to TipRanks, Serrano is a 4-star analyst with an average return of 7.2% and a 54.60% success rate. Serrano covers the Financial sector, focusing on stocks such as Banco Santander, Barclays, and Bank Of Ireland Group plc.