RE: R i1 Nov 2024 07:50
No RI necessary, however nothing to fear with one if you are happy to increase holding and average down further.
For me, not advice, this is a screaming buy. RBC Capital iss ued a note yesterday. A 70m provision increase, subjuct to appeal, quantifies the hit and the decision in perhaps next Summer ?
Still suggests a revised 435p ltarget as the price hovers around 225p !
For Lloyds, RBC estimates a £3.2bn impact, up from an earlier estimate of £2.5bn, while Barclays could be charged £400m (previously £360m) and Close Brothers could see a £320m bill (previously £250m). The estimated impact on Santander UK and Bank of Ireland have also been increased.
Regarding Lloyds, the broker believes the bank will reduce its 2024 buyback programme to just £1.0bn, compared with an earlier estimate of £2.0bn.
The broker has cut its target price for Lloyds shares to 56p from 60p, keeping a 'sector perform' rating on the stock. The target for Close Brothers ('outperform') has been slashed to 435p from 540p while the target for Barclays ('outperform') has been maintained at 285p.