Shore Capital downgrades Lloyds Banking Group to ‘sell’ after strong run
Shore Capital downgraded Lloyds Banking Group to ‘sell’ from ‘hold’ on Monday following a strong run that has left the shares fully valued, but lifted the price target to 91p from 84p.
Lloyds Banking Group
02 February 2026 12:50:26
Source: Sharecast
The broker said Lloyds’ full-year results showed better-than-expected profitability primarily due to a lower-than-expected impairment charge in the fourth quarter, making this a "relatively low-quality" beat.
Nevertheless, return on tangible equity guidance for FY26 was upgraded to more than 16% from more than 15%, which Shore thinks the company will "comfortably" achieve.
However, it said Lloyds may struggle to sustain the ROTE in the long-term "given the competitive pressure and risk of further taxation that such supernormal returns may eventually attract".
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Lloyds and Lloyds Bank are trading names of Halifax Share Dealing Limited. The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.
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