Davy Research

Lloyds Banking Group

Little earnings momentum; downgrade to ‘Neutral’
Banks
Lloyds Banking Group

DAVY VIEW

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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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • Lloyds Banking Group

    Closing Price: 6648p

  • RATING 14/02/18

  • PREVIOUS RATING 13/11/15

    Outperform

Analyst(S)

COMPANY DATA

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