Shore Capital downgrades Lloyds Banking Group to ‘sell’ after strong run.
Shore Capital downgraded Lloyds Banking Group to ‘sell’ from ‘hold’ on Monday following a strong run that has left the shares fully valued, but lifted the price target to 91p from 84p.
Lloyds Banking Group
02 February 2026 12:50:26
Source: Sharecast
The broker said Lloyds’ full-year results showed better-than-expected profitability primarily due to a lower-than-expected impairment charge in the fourth quarter, making this a "relatively low-quality" beat.
Nevertheless, return on tangible equity guidance for FY26 was upgraded to more than 16% from more than 15%, which Shore thinks the company will "comfortably" achieve.
However, it said Lloyds may struggle to sustain the ROTE in the long-term "given the competitive pressure and risk of further taxation that such supernormal returns may eventually attract".
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