Lloyds Banking Group (LON:LLOY) Sets New 1-Year High - Still a Buy?

Key Points

• Lloyds shares reached a new 52-week high of GBX 116.20 after the bank reported first-half profit of approximately £4.3 billion, up 23%, and quarterly EPS of GBX 4.80, exceeding expectations.
• Management plans to reduce costs by a further £2 billion through 2030, partly through artificial intelligence, while ongoing share buybacks could support per-share returns.
• Despite a “Moderate Buy” analyst consensus, valuation concerns, potential additional bank taxes and broader economic risks could limit upside; the consensus price target is GBX 113.80, below the recent share price.

Lloyds Banking Group plc (LON:LLOY - Get Free Report) shares reached a new 52-week high during trading on Thursday . The stock traded as high as GBX 116.20 and last traded at GBX 116, with a volume of 428657406 shares traded. The stock had previously closed at GBX 111.35.

Key Headlines Impacting Lloyds Banking Group

Here are the key news stories impacting Lloyds Banking Group this week:

• Positive Sentiment: First-half profit reportedly rose 23% to approximately £4.3 billion, while quarterly earnings per share came in at GBX 4.80. The result exceeded market expectations and supports the view that Lloyds is benefiting from resilient UK banking conditions. Lloyds Profit Beats Estimates as UK Lender Plots 2030 Plan
• Positive Sentiment: Management plans to cut a further £2 billion in costs through 2030, including greater use of artificial intelligence. Successful execution could improve operating efficiency, margins and long-term returns. Lloyds Bank to cut £2bn in costs as part of AI-powered strategy
• Positive Sentiment: Lloyds also continued its share buyback, repurchasing and cancelling 1 million ordinary shares. This modestly reduces the share count and can enhance per-share returns. Lloyds Banking Group Cancels 1 Million Shares in Ongoing Buyback
• Neutral Sentiment: The official half-year release provides detailed capital, credit and liquidity disclosures, but also emphasizes uncertainty around interest rates, inflation, tariffs, geopolitics, regulation, cyber risks and borrower credit quality. Lloyds Bank plc Reports 2026 Half-Year Results
• Negative Sentiment: Bank of America maintained a Hold rating and a GBX 130 price target, saying the solid results are offset by a relatively full valuation. This may limit further upside unless Lloyds delivers on its cost and AI targets. Lloyds Solid Results but Full Valuation Keeps Risk-Reward Balanced
• Negative Sentiment: Reports also highlight renewed political pressure for additional taxes on banks, which could weigh on future profitability and shareholder distributions. Lloyds profits climb to £4.3 billion as calls for tax raids intensify

Analysts Set New Price Targets

LLOY has been the topic of a number of analyst reports. JPMorgan Chase & Co. reduced their price target on Lloyds Banking Group from GBX 171 to GBX 121 and set a "neutral" rating on the stock in a research report on Monday, April 13th. Citigroup upped their target price on shares of Lloyds Banking Group from GBX 114 to GBX 123 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Royal Bank Of Canada reiterated an "outperform" rating and issued a GBX 120 price target on shares of Lloyds Banking Group in a research note on Thursday, April 30th. Jefferies Financial Group reiterated a "buy" rating and set a GBX 125 price target on shares of Lloyds Banking Group in a report on Wednesday, April 29th. Finally, Shore Capital Group reaffirmed a "sell" rating on shares of Lloyds Banking Group in a research report on Thursday, April 30th. Six investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of GBX 113.80.

Lloyds Banking Group Stock Up 3.8%

The company has a market capitalization of £67.23 billion, a PE ratio of 15.21, a PEG ratio of 1.84 and a beta of 0.91. The stock's fifty day simple moving average is GBX 107.14 and its 200-day simple moving average is GBX 102.52.

Lloyds Banking Group (LON:LLOY - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The financial services provider reported GBX 4.80 EPS for the quarter. Lloyds Banking Group had a return on equity of 10.75% and a net margin of 25.91%. Analysts expect that Lloyds Banking Group plc will post 7.3199528 EPS for the current year.

About Lloyds Banking Group

We are the largest UK retail and commercial financial services provider with over 25 million customers and a presence in nearly every community. The Group's main business activities are retail and commercial banking, general insurance and long-term savings, provided through the largest branch network and digital bank in the UK, with well recognised brands including Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows. Our shares are quoted on the London and New York stock exchanges and we are one of the largest companies in the FTSE 100 index.

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