Stock market today: S&P 500 rides Apple-led tech rally to close higher
Investing.com - Goldman Sachs has upgraded Lloyds Banking Group Plc . (LSE:LON:LLOY) (NYSE:LYG) from Neutral to Buy and raised its price target to GBP0.99 from GBP0.87.
The upgrade comes as Goldman Sachs believes the market can now refocus on Lloyds’ core equity story following clarity on the motor finance compensation scheme, with the Financial Conduct Authority estimating total industry costs around £13.5 billion.
Lloyds has confirmed that any changes to provisioning related to the motor finance issue would likely not be material to the group, allowing investors to concentrate on the bank’s fundamentals.
Goldman Sachs describes Lloyds’ equity story as "compelling," citing strengthening revenue diversification, sector-leading EPS growth, increasing profitability, undemanding valuation, and attractive capital returns through dividends and buybacks.
The investment bank forecasts an 8% core revenue compound annual growth rate for Lloyds through 2027 compared to 2024, significantly outpacing the sector average of 3%, with earnings estimates 4-7% ahead of consensus for 2026-2027, primarily driven by stronger revenue projections.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.