- Lloyds Banking Group
- 04 August 2025 09:27:46
Source: Sharecast
"We see Friday's Supreme Court judgement as a clearing event for the bank and expect the FCA to take a moderate approach when laying out its final redress scheme towards the end of this year," it said.
RBC said that in valuation terms, Lloyds looks relatively fairly valued, however it thinks the stock should trade at a premium to peers for a number of factors.
"We like: (i) the strength of the bank's deposit franchise, (ii) earnings sustainability driven by the structural hedge, and (iii) a relatively attractive total return yield," RBC said.
"It's hard to see LLOY underperforming into the medium term given rate expectations and a softening regulatory backdrop."
RBC said it’s around 8% ahead of consensus earnings per share by FY27E and 15% ahead on distributions.
The bank kept its price target at 95p.