Keefe downgrades ‘expensive’ Lloyds Banking to Market Perform

Keefe Bruyette downgraded Lloyds Banking (LYG) to Market Perform from Outperform with a price target of 75 GBp, up from 65 GBp. The bank reported solid Q4 results but is now the “most expensive UK bank” in terms of price-to-tangible book value despite being third in profitability, the analyst tells investors in a research note. Keefe continues to like UK banks, citing the benefits of amortizing hedges, but with little in the Lloyds share price for ongoing motor finance redress risk, it prefers NatWest Group (NWG).