Lloyds Banking Group (LON:LLOY) Sets New 12-Month High – Still a Buy?

Lloyds Banking Group plc (LON:LLOY) shares hit a new 52-week high during trading on Thursday . The company traded as high as GBX 116.20 and last traded at GBX 116, with a volume of 428657406 shares traded. The stock had previously closed at GBX 111.35.

Key Headlines Impacting Lloyds Banking Group

Here are the key news stories impacting Lloyds Banking Group this week:

• Positive Sentiment: Large share buyback underway: Lloyds is advancing its £1.75 billion repurchase programme, including the cancellation of recently bought shares. Buybacks can support earnings per share and signal management confidence. Lloyds Banking Group Advances £1.75bn Share Buyback and Moves to Weekly Reporting
• Positive Sentiment: Solid first-half performance and ambitious targets: Lloyds reported first-half profit of approximately £4.3 billion, up 23%, while outlining plans to cut a further £2 billion in costs. Its AI-driven strategy targets return on tangible equity above 18% in 2028 and around 20% in 2030, potentially improving efficiency and profitability. Lloyds Bank to cut £2bn in costs as part of AI-powered strategy
• Positive Sentiment: Analyst support strengthened: Royal Bank of Canada raised its price target to 124 pence and upgraded its view to “outperform.” Deutsche Bank and Jefferies reaffirmed “buy” ratings with 125-pence targets. Broker views on Lloyds Banking Group
• Neutral Sentiment: Lloyds confirmed 58.15 billion ordinary shares in issue and updated its £60 billion euro medium-term note documentation. These are routine capital-markets and disclosure updates rather than immediate earnings catalysts. Lloyds Banking Group Confirms Voting Share Capital Structure
• Negative Sentiment: Valuation may limit upside: Bank of America maintained a “hold” rating, saying the strong results may already be reflected in the share price. The bank also faces potential political pressure for additional taxes on lenders. Lloyds: Solid Results but Full Valuation Keeps Risk-Reward Balanced

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Royal Bank Of Canada raised their target price on Lloyds Banking Group from GBX 120 to GBX 124 and gave the company an “outperform” rating in a research note on Friday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a GBX 125 price target on shares of Lloyds Banking Group in a research report on Friday. Citigroup increased their price objective on shares of Lloyds Banking Group from GBX 114 to GBX 123 and gave the stock a “buy” rating in a report on Thursday, April 30th. Berenberg Bank reiterated a “hold” rating and issued a GBX 117 price objective on shares of Lloyds Banking Group in a research report on Wednesday, June 24th. Finally, Shore Capital Group reissued a “sell” rating on shares of Lloyds Banking Group in a research note on Thursday, April 30th. Six research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Lloyds Banking Group currently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 114.20.

Lloyds Banking Group Trading Down 0.8%

The stock has a market capitalization of £66.72 billion, a price-to-earnings ratio of 15.09, a PEG ratio of 1.84 and a beta of 0.91. The firm has a 50-day moving average of GBX 107.78 and a 200 day moving average of GBX 102.72.

Lloyds Banking Group (LON:LLOY) last announced its earnings results on Thursday, July 30th. The financial services provider reported GBX 4.80 earnings per share for the quarter. Lloyds Banking Group had a return on equity of 11.05% and a net margin of 26.73%. Equities research analysts predict that Lloyds Banking Group plc will post 7.3199528 EPS for the current fiscal year.

About Lloyds Banking Group

We are the largest UK retail and commercial financial services provider with over 25 million customers and a presence in nearly every community.

The Group’s main business activities are retail and commercial banking, general insurance and long-term savings, provided through the largest branch network and digital bank in the UK, with well recognised brands including Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows.

Our shares are quoted on the London and New York stock exchanges and we are one of the largest companies in the FTSE 100 index.