Lloyds Banking Group

Little earnings momentum; downgrade to ‘Neutral’

  • Sectors : Banks
  • Companies : Lloyds Banking Group

Ratings and price correct at time of issue.

  • Lloyds Banking Group

    Closing Price: 6648p

  • RATING 14/02/18

  • PREVIOUS RATING 13/11/15



Earnings sustainability, capital requirements and dividend capability were dominant themes in Lloyds Banking Group (LLOY) in 2017 and will likely remain so during 2018. We do not expect the increase in capital requirements to impact materially upon dividend capability due to the strong capital generation evident during 2017, and we expect a progressive dividend policy to continue. Yet, in our opinion, the stock is now approaching fair value and we downgrade to ‘Neutral’ with a price target of 72p.

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Feb 14 2018, 07:15 GMT