Lloyds Banking (LLOY – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Perlie Mong from Bank of America Securities maintained a Hold rating on the stock and has a p60.00 price target.
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Perlie Mong’s rating is based on a combination of factors impacting Lloyds Banking’s performance. The underlying profit before tax for the fourth quarter was significantly lower than the consensus due to a substantial provision related to motor finance commissions. This provision, amounting to £700 million, indicates ongoing uncertainty regarding the financial implications of this issue.
Despite the challenges, there are positive aspects such as Lloyds’ capital management initiatives, including a £1.7 billion share buyback and a higher-than-expected final dividend. The bank’s future guidance aligns closely with market expectations, suggesting stability in income and operating costs. These mixed signals contribute to the Hold rating, reflecting cautious optimism amid existing uncertainties.
In another report released on February 11, Citi also maintained a Hold rating on the stock with a £0.61 price target.