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Pin to quick picksLloyds Share News (LLOY)

Share Price Information for Lloyds (LLOY)

London Stock Exchange
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Share Price: 52.18
Bid: 52.26
Ask: 52.30
Change: 0.00 (0.00%)
Spread: 0.04 (0.077%)
Open: 0.00
High: 0.00
Low: 0.00
Prev. Close: 52.18
LLOY Live PriceLast checked at -

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Broker snap: UBS sees 'improving momentum' at Lloyds

Mon, 12th Nov 2012 10:00

UBS has raised its target price for UK banking group Lloyds from 44p to 46p, saying that the bank's third-quarter results showed 'solid progress and improving momentum'.Core business profit in the third quarter was £1.7bn, the highest reported level for nearly two years, UBS said, "with the group enjoying both margin expansion and a faster decline in impairments than previously expected."The broker highlighted that Lloyds's non-core "run down" is ahead of schedule with the non-core book reducing by £8bn in the third quarter alone.The year-to-date total run-down is now £31bn, leading management to increase its full-year disposal target to £38bn, £13bn higher than the original target.Meanwhile, the impairment guidance for the full year has declined from an expected provision charge of £7.2bn to £6bn. As such, UBS has raised its full-year earnings per share (EPS) forecast by 24%, though 2013 and 2014 numbers remain largely unchanged.The broker said: "For the first time in over a year, Lloyds is trading above the implicit book value of its core business, suggesting that the market is pricing in sustained RoE [return on equity] delivery in excess of CoE [cost of equity]. "We remain 'neutral' on Lloyds and the other UK domestic banks as we believe that there is a low, but non-zero, risk of regulatory driven dilutive equity raising."Shares were up 2.37% at 44.65p in mid-morning trade on Monday.BC
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