UK-based Lloyds Banking Group PLC (GB:LLOY) has received a Hold consensus rating, with mixed views from analysts and the projection of a 24% potential upside in its share price. Lloyds Banking Group is one of the UK’s oldest and largest banks, providing a wide range of financial services.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Over the years, investors have viewed Lloyds Banking as a reliable choice for a core portfolio. The stock offers steady and growing dividend income, along with some potential for share price growth under favorable conditions. Year-to-date, LLOY stock has gained 10.4%.
Let’s have a look at more details.
Mixed Sentiments Cloud Analyst Views on Lloyds
Analysts are split on Lloyds, with a mix of Buy and Hold ratings reflecting varied outlooks. Earlier this month, analysts from Barclays and Deutsche Bank reiterated their Buy ratings on the stock. Aman Rakkar from Barclays predicts an upside of 41%, while Robert Noble from Deutsche Bank sees a growth potential of over 50% in the LLOY share price. On the other hand, Citi analyst Andrew Coombs maintained a Hold rating on LLOY stock, predicting just 5.2% upside.
Overall, analysts are hopeful of further dividend hikes and share buybacks, driven by the bank’s improved cash generation. Furthermore, analysts believe that, unlike many European banks, Lloyds has an advantage of structural hedges that enable it to grow its income over the medium term.
On the downside, analysts remain concerned about rising costs and a declining net interest margin. The bank, however, reaffirmed its expectation for the margin to exceed 2.9% for the full year, slightly below the current consensus estimate of 2.93%. Overall, Lloyds maintained its 2024 guidance in its Q3 update, citing improved financial confidence among its customers.
TipRanks Unveils Top Analysts for LLOY Stock
TipRanks Star Ranking evaluates financial experts based on their success rate, average return, and statistical reliability. This allows users to monitor and assess the performance of leading analysts on stocks to uncover potential investment opportunities.
Both Rakkar and Noble are among the most profitable analysts on LLOY stock over the time frame ranging between one month to two years.
Lloyds Offers a Dividend Yield of Over 5%
Lloyds shares provide a dividend yield of 5.3%, making them a favoured option for income investors seeking steady returns.
For 2024, the bank declared an interim dividend of 1.06p per share in September, reflecting a 15% rise from the prior year’s interim payout. This dividend growth aligns with Lloyds’ progressive and sustainable dividend policy. Going forward, the bank plans to maintain this policy while keeping the flexibility to consider additional capital distributions in 2024.
Are Lloyds Shares a Good Buy Now?
According to TipRanks’ analyst consensus, LLOY stock has a Hold rating based on a total of 11 recommendations, of which seven are Hold. It also includes three Buys and one Sell rating. The Lloyds share price target is 66p, which shows a positive change of 24% in the share price.
