Morgan Stanley downgraded Lloyds Banking (LYG) to Equal Weight from Overweight with a price target of 65 GBp, down from 70 GBp. Post the appeals court judgment on Friday, the firm increased its base case for the Motor Finance litigation charge from GBP 1B to GBP 2.1B. It could take several quarters before there is clarity, and this may affect buyback expectations, the analyst tells investors in a research note.
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