Lloyds Banking Group (LON:LLOY) Hits New 12-Month High – Still a Buy?

Lloyds Banking Group plc (LON:LLOY) shares reached a new 52-week high on Wednesday . The stock traded as high as GBX 105.25 and last traded at GBX 105.25, with a volume of 111480188 shares traded. The stock had previously closed at GBX 103.

Key Stories Impacting Lloyds Banking Group

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

• Positive Sentiment: Quarterly/annual results beat forecasts and management upgraded targets — Lloyds reported rising profits (annual profit +12%) and raised guidance, a core reason investors are buying the stock. FT: Lloyds profits surge
• Positive Sentiment: Large share buyback announced — Lloyds launched a programme to repurchase up to £1.75bn of ordinary shares to cut share capital, directly supporting EPS and providing a clear capital-return signal. TipRanks: £1.75bn buyback
• Positive Sentiment: £3.1bn being returned to investors — management is returning billions via buybacks/dividends as profits surge, boosting shareholder yield and supporting the share price. BM Magazine: Lloyds to return £3.1bn
• Positive Sentiment: AI initiative expected to add >£100m in value in 2026 — operational leverage from next‑gen AI programs supports medium-term profitability. Financial IT: AI value >£100m
• Neutral Sentiment: Updated £25bn Euro Medium‑Term Note (EMTN) programme prospectus — expands funding flexibility but is principally a capital markets housekeeping item rather than an immediate earnings driver. TipRanks: EMTN programme update
• Neutral Sentiment: Board change — Chris Vogelzang appointed to the board risk committee; governance boost but limited short-term price impact. TipRanks: Vogelzang appointment
• Neutral Sentiment: Analysts remain cautious — Bank of America and Shore Capital keep ‘Hold’ ratings, noting solid results but limited upside vs. current valuation (Perlie Mong p110 PT). TipRanks: Hold ratings
• Negative Sentiment: Regulatory fine at Bank of Scotland — Lloyds-owned Bank of Scotland fined for breaching UK Russia sanctions, a reputational and potential cost headwind. MSN: Bank of Scotland fined
• Negative Sentiment: Market note: some analysts signal the market has already priced in gains — a Seeking Alpha piece flagged a downgrade/valuation squeeze after the rally, which can cap near-term upside. Seeking Alpha: Market has caught up

Wall Street Analyst Weigh In

A number of equities analysts recently commented on LLOY shares. Barclays raised their target price on Lloyds Banking Group from GBX 100 to GBX 120 and gave the stock an “overweight” rating in a report on Wednesday, January 7th. Deutsche Bank Aktiengesellschaft boosted their price objective on Lloyds Banking Group from GBX 100 to GBX 110 and gave the company a “buy” rating in a research note on Friday, January 23rd. Citigroup increased their target price on shares of Lloyds Banking Group from GBX 84 to GBX 97 and gave the stock a “neutral” rating in a report on Monday, December 1st. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and set a GBX 93 price target on shares of Lloyds Banking Group in a report on Friday, October 10th. Finally, Shore Capital reissued a “hold” rating on shares of Lloyds Banking Group in a research note on Thursday. Five research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Lloyds Banking Group has a consensus rating of “Moderate Buy” and a consensus price target of GBX 104.33.

Lloyds Banking Group Stock Up 2.4%

The company has a market capitalization of £63.46 billion, a PE ratio of 18.95, a PEG ratio of 1.84 and a beta of 1.23. The company’s 50 day moving average is GBX 97.99 and its two-hundred day moving average is GBX 88.51.

Lloyds Banking Group (LON:LLOY) last released its quarterly earnings data on Thursday, January 29th. The financial services provider reported GBX 7 EPS for the quarter. Lloyds Banking Group had a net margin of 16.66% and a return on equity of 11.22%. Analysts forecast that Lloyds Banking Group plc will post 7.3199528 EPS for the current year.

Lloyds Banking Group Company Profile

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.