Analyst Views: Is there any room left for Lloyds’ share price to bounce back again?
IAN GORDON | INVESTEC
We welcome the new realism in the unscheduled pre-results update. Before this, we had anticipated only a further £1.2bn PPI charge. With a further margin boost we see potential for upgrades to the 2014 underlying profit before tax consensus of £6.3bn.
GARETH HUNT | CANACCORD GENUITY
While the market will extrapolate the underlying profit before tax performance into upgrades for full year 2014 there is the potential for some disappointment on dividend timing. We currently estimate Lloyds to be trading on 1.42x 2014 net asset value. This share price seems “about right” to us.
SHAILESH RAIKUNDLIA | ESPIRITO SANTO
We believe the market will be disappointed as dividend payment was expected to have commenced at the beginning of 2014. Lloyds is the most expensive among UK banks and with continued risk of significant below the line charges, we remain sellers.