Gold-rated investor Job Curtis of City of London trust has named Lloyds Banking Group (LON:LLOY) as one of the companies in his portfolio that offer sustainable income, Morningstar has reported. In a separate development, Deutsche Bank trimmed its price target on the bailed-out lender on Friday, while maintaining its ‘buy’ stance on the shares.
Lloyds’ share price has been steady in London in today’s session, having added 0.22 percent to 67.44p as of 13:26 GMT. The shares are outperforming the broader market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.17 percent lower at 7,212.31 points.
Job Curtis weighs in on Lloyds
Job Curtis, Manager of the City of London Trust said in an interview with Morningstar’s Emma Wall released today that Lloyds was one of the companies in his portfolio offering sustainable income. He explained that the lender, which returned to full private ownership last year, was “on about a 4.5-percent dividend yield, and it’s relating its share price to its book value, it’s on about 1.2 times”.
“I’ve seen banks in other countries, other jurisdictions, on much higher ratings. So, I think, this will be a good dividend stock going forward,” Curtis said, as quoted by Morningstar, adding that Lloyds had “gone back to what it was originally”.
Deutsche Bank trims valuation
In other Lloyds news, Deutsche Bank trimmed their price target on the stock from 83p to 80p on Friday, noting that the lender’s 2020 targets implied earnings per share of 8.5p, which would put the bank on eight times target earnings, against the sector average estimate of 9.6 times.
“Our forecasts are not as optimistic (reflecting lower revenues, higher impairments, offset by lower share count), but despite this we still have 17-percent upside to our target price,” the broker pointed out, as quoted by Proactive Investors, while maintaining its ‘buy’ stance on the shares.