Equities By Region Finance and Banking UK

Lloyds share price: Berenberg retains ‘sell’ stance on lender

Berenberg remains bearish on Lloyds Banking Group (LON:LLOY), naming the bank as one of the riskiest UK lenders. WebFG News reports that the analysts argue that because of doubts about Brexit, politics and the economy, sentiment towards UK banks has rarely been lower.

Lloyds’ share price has slipped marginally into the red in today’s session, having given up 0.27 percent to 62.46p as of 13:30 BST. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.15 percent lower at 7,667.26 points. The group’s shares have lost more than eight percent of their value over the past year, as compared with a near three-percent gain in the Footsie.

Berenberg sees Lloyds as ‘sell’

Berenberg, which sees Lloyds as a ‘sell,’ set a price target of 60p on the stock today, with UK lenders currently out of favour with investors.

“While broad-based respite from the current negative sentiment is unlikely given ever-present political and economic risks, greater differentiation between UK banks is possible,” the broker’s analyst Peter Richardson pointed out, as quoted by WebFG News. “Avoiding cyclically-exposed banks, in particular Lloyds, is essential.”

Berenberg meanwhile maintained its ‘buy’ stance on FTSE 100 peers RBS (LON:RBS) and Standard Chartered (LON:STAN), and continues to see HSBC (LON:HSBA) and Barclays (LON:BARC) as ‘hold’.

Other analysts on FTSE 100 lender

Goldman Sachs, which also sees Lloyds as a ‘sell,’ set a price target of 58p on the shares last week. According to MarketBeat, the bailed-out lender currently has a consensus ‘hold’ rating and an average price target of 74.67p on the shares.

Last week, news emerged that Lloyds is planning to operate three subsidiaries in continental Europe after the UK leaves the European Union.

As of 13:41 BST, Monday, 23 July, Lloyds Banking Group share price is 62.53p.

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