Update shared on08 Oct 2025
Fair value Increased 1.31%Analysts have raised their price target for Lloyds Banking Group to £0.91 from £0.89. They cite improvements in projected revenue growth, profit margins, and fair value estimates.
What's in the News
- Lloyds Banking Group announced as the first U.K. financial institution to become a benefactor of MITRE ATT&CK, leveraging the open-source framework to strengthen its cyber defense strategy.
- The Supreme Court's August 2025 judgment clarified that motor dealers acting as credit brokers do not owe fiduciary duties to customers. This decision affects the Group's provisioning for possible compensation. The FCA plans to consult on an industry-wide compensation scheme by early October (Supreme Court, FCA).
- Completion of a share buyback: Lloyds repurchased 1,000,000,000 shares, representing 1.65% of the company, for £733 million between February and June 2025.
- An interim dividend is recommended at 1.22 pence per share for the half year ended June 2025, representing a 15% increase on the prior year.
- Lloyds reported it is in advanced discussions to acquire Curve UK Limited for up to £120 million, with a deal potentially announced by the end of September 2025 (Sky News).
Valuation Changes
- Fair Value Estimate has increased modestly from £0.89 to £0.91 per share.
- Discount Rate has edged higher, rising from 8.34% to 8.40%.
- Revenue Growth projection has risen slightly, now estimated at 7.98% compared to the previous 7.93%.
- Net Profit Margin has improved marginally, moving from 25.77% to 25.82%.
- Future P/E Ratio is now projected at 11.26x, up from 11.13x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.