Lloyds Banking Group is Overvalued, say Analysts

Morningstar analysts have downgraded Lloyds from three stars to two - meaning they consider the financial stock to be overvalued

Emma Wall 14 August, 2013 | 4:23PM

Lloyds Banking Group has been downgraded by analysts who now consider the stock overvalued and have allocated it two stars. 

The stock has fallen from a four star rating in the second quarter of 2012, when the share price was less than 40p, to two stars as the share price hovers around 75p. Over the past 12 months Lloyds share price has steadily climbed, surpassing analysts' Fair Value price of 60p in May this year. 

Analysts say investors should consider selling the stock at 105p. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Lloyds Banking Group PLC31.03 GBX-2.59

About Author

Emma Wall  is former Senior International Editor for Morningstar

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