Lloyds share price: Interactive Investor weighs in on lender

Interactive Investor argues that Lloyds Banking Group’s (LON:LLOY) latest results show that the lender is in ‘rude health’ with a ‘clear vision,’ Citywire reports. The comments came after the bailed-out lender updated investors on its full-year performance yesterday, posting lower-than-expected profits, while announcing that it plans to spend £4 billion on dividends and a share buyback.

Lloyds’ share price rose in the previous session as investors cheered the update, gaining 4.73 percent to 61.13p, and outperforming the benchmark FTSE 100 index which closed 0.69 percent higher at 7,228.62 points. This morning, the shares have built on yesterday’s gains, having added 0.61 percent to 61.50p as of 08:11 GMT, compared with a 0.32-percent dip in the Footsie.

Interactive Investor weighs in on Lloyds

Citywire reported yesterday that Interactive Investor analyst Richard Hunter had hailed Lloyds’ streamlined business model and market-leading digital presence, noting that a £3-billion  investment into the business should reap benefits as it moves into financial planning via its tie-up with Schroders (LON:SDR). He further said that the FTSE 100 lender’s post-tax profit was up 24 percent while the net interest margin had improved.

“Negatives within the results are few and far between,” Hunter pointed out, adding that Lloyds’ share price had “suffered in a way the company has clearly not,” which led “to the dilemma of whether investors should take the plunge, since in the event of a positive Brexit result, the stock would surely be subject to a significant reappraisal”.

Other analysts on bailed-out lender

Shore Capital reaffirmed Lloyds as a ‘buy’ yesterday, while UBS, which also sees the bailed-out lender as a ‘buy,’ set a price target of 80p on the shares. According to MarketBeat, the FTSE 100 group currently boasts a consensus ‘buy’ rating and an average price target of 73.88p.

As of 08:17 GMT, Thursday, 21 February, Lloyds Banking Group share price is 61.50p.