Analysts Upgrade Lloyds Bank

While Brexit could affect Lloyds' operations more than others’, analysts believe the bank can weather any short-term volatility

Derya Guzel 12 April, 2018 | 7:53AM
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Lloyds (LLOY) is a pure U.K. banking play, with 95% of its assets based domestically. After its massive restructuring, which started in 2011, the bank emerged as a low-risk domestic retail and commercial bank.

With this update, we have updated our model with 2017 actual numbers, rolled our model by adding a year, and taken a fresh look at our estimates overall in light of the last management call and full-year results. On the whole, our investment thesis for Lloyds is intact and our sentiment is that the unique brand franchise is unchanged. Following small adjustments to our estimate in 2021/22, mainly on the margin side, we have adjusted our fair value estimate slightly to 76p from 84p per share.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Lloyds Banking Group PLC49.12 GBX1.39Rating

About Author

Derya Guzel  is an Equity Analyst for Morningstar