Update shared on 05 Nov 2025
Fair value Increased 3.99%Analysts have raised their price target on Lloyds Banking Group from £0.91 to £0.94 per share. They cite stronger anticipated revenue growth, improved profit margins, and a modestly lower discount rate as key factors supporting the upgrade.
What's in the News
- Lloyds Banking Group completed the repurchase of 1.8 billion shares, representing 2.98 percent of its outstanding shares, for £1.4 billion under its ongoing buyback program. (Key Developments)
- The bank raised its earnings guidance for the fiscal year 2025 and now expects net interest income around GBP 13.6 billion, slightly ahead of previous forecasts. (Key Developments)
- Lloyds is reportedly planning to end its wealth management partnership with Schroders and may acquire Schroders' 49.9 percent stake in Schroders Personal Wealth. This move would position Lloyds to expand its wealth services. (Key Developments)
- Lloyds Banking Group became the first UK financial services benefactor of MITRE ATT&CK by integrating the open-source framework to enhance its cyber defense strategy. (Key Developments)
Valuation Changes
- Fair Value: Increased slightly from £0.91 to £0.94 per share following the latest update.
- Discount Rate: Declined modestly from 8.41% to 8.21%, which reflects lower perceived risk.
- Revenue Growth: Forecast to rise from 7.99% to 8.43% year-over-year.
- Net Profit Margin: Improved from 25.83% to 28.07%, indicating stronger profitability.
- Future P/E: Decreased from 11.27x to 9.86x, suggesting shares are now valued at a lower earnings multiple.
Disclaimer
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