Analyst Perlie Mong from Bank of America Securities reiterated a Hold rating on Lloyds Banking and increased the price target to p85.00 from p73.00.
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Perlie Mong has given his Hold rating due to a combination of factors influencing Lloyds Banking’s performance. The bank reported a strong second quarter, with underlying profit before tax exceeding expectations by approximately 16%, primarily due to reduced costs and impairments. Despite this positive performance, the absence of updates on the Motor Finance issue and the pending Supreme Court judgment contribute to ongoing uncertainties.
Additionally, while Lloyds Banking’s cost of equity has decreased, leading to an increased price objective, the unresolved Motor Finance matter and its potential implications on the Financial Conduct Authority’s redress scheme add a layer of risk. These elements, combined with the bank’s stable net interest income and other income, support the decision to maintain a Neutral or Hold stance on the stock until further clarity is achieved.
In another report released on July 25, UBS also maintained a Hold rating on the stock with a p80.00 price target.
Based on the recent corporate insider activity of 117 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LLOY in relation to earlier this year.