Update shared on 04 Dec 2025
Fair value Increased 1.47%Analysts have raised their price target for Lloyds Banking Group, reflecting modest improvements in fair value estimates and slightly stronger expectations for revenue growth and profitability.
What's in the News
- Lloyds Banking Group raised its earnings guidance for fiscal 2025, now expecting net interest income of around GBP 13.6 billion, slightly ahead of previous guidance (company guidance).
- The bank reported progress on its share buyback program, repurchasing 800 million shares for £667 million between July 1 and September 30, 2025, and completing a total of 1.8 billion shares for £1.4 billion under the February 21, 2025 authorization (company buyback update).
- Lloyds is reportedly planning to end its wealth management partnership with Schroders and is considering buying the remaining 49.9% stake in Schroders Personal Wealth, which would give Lloyds full control and room to expand its wealth services for affluent customers (M&A discussions).
Valuation Changes
- Fair Value Estimate has risen slightly, with the modelled fair value increasing from 0.94 to 0.96, reflecting a modest uplift in long term fundamentals.
- Discount Rate has edged down marginally, from 8.45 percent to 8.45 percent, implying a slightly lower required return in the updated valuation model.
- Revenue Growth Assumption has increased very slightly, moving from 8.43 percent to 8.44 percent, indicating a small improvement in expected top line expansion.
- Net Profit Margin Forecast is essentially unchanged, ticking up from 28.07 percent to 28.07 percent, suggesting stable profitability expectations.
- Future P/E Multiple has risen modestly, from 10.45x to 10.61x, indicating a small increase in the valuation investors may be willing to pay for forward earnings.
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