Barclays Analyst Maintains Buy Rating on Lloyds Banking, Average Price Target at £81.80

Lloyds Banking received a Buy rating from Barclays analyst Aman Rakkar. The stock's one-year high is £79.19 and low is £47.43, with an average volume of 127.8M. Corporate insider activity shows negative sentiment with an increase in insiders selling shares over the past quarter. The average price target is £81.80, a 7.29% upside from current levels.

Lloyds Banking Group (LSE: LLOY) has been the subject of interest among investors and analysts alike, with a significant increase in its share price this year. The stock has seen a 40% rise year-to-date, outperforming its major UK banking peers [1]. However, the robust stock performance has been accompanied by mixed signals regarding the company's underlying financial health and strategic direction.

Analyst Ratings and Price Targets

Analysts at Barclays have recently given Lloyds a Buy rating, with an average price target of £81.80, representing a 7.29% upside from current levels [2]. This rating comes amidst a backdrop of positive earnings forecasts, with analysts expecting earnings per share (EPS) to jump 30% over the next 12 months [1]. Despite the positive outlook, the stock's one-year high of £79.19 and low of £47.43 indicate a volatile trading environment.

Corporate Insider Activity

Corporate insider activity has shown negative sentiment, with an increase in insiders selling shares over the past quarter [2]. This could be a signal of concern among insiders, potentially due to the risks associated with the domestic UK market exposure and regulatory investigations [1].

Strategic Moves

Lloyds Banking Group is also making strategic moves to bolster its digital payments capabilities. The bank is reportedly in advanced talks to acquire Curve, a digital wallet provider, in a deal valued at approximately £120m [3]. The acquisition aims to expand Lloyds' presence in the payments infrastructure sector and potentially bypass Apple Pay fees. Curve has positioned itself as a rival to Apple Pay and has over six million customers, processing billions in payments each year [3].

Risks and Considerations

While the acquisition of Curve presents an opportunity for Lloyds to strengthen its digital payments capabilities, it also comes with risks. Lloyds remains heavily exposed to the domestic UK market, making it vulnerable to a slowdown in consumer spending or a rise in mortgage defaults. Additionally, the bank faces an industry-wide car finance mis-selling investigation, which could weigh on future profits if regulators clamp down hard [1].

Conclusion

Despite the mixed signals and risks, Lloyds Banking Group continues to be a stock worth considering for investors seeking reliable dividends and cautious optimism. The bank's strategic acquisition of Curve and positive earnings forecasts provide a compelling case for continued investment. However, investors should remain vigilant and monitor the regulatory environment and economic conditions that could impact the bank's performance.

References

[1] https://www.fool.co.uk/2025/07/16/lloyds-share-price-up-40-this-year-is-it-time-to-take-profits/
[2] https://www.banking-gateway.com/news/lloyds-banking-group-in-advanced-talks-to-acquire-fintech-curve/
[3] https://www.bankingexchange.com/news-feed/item/10359-lloyds-banking-group-reportedly-set-to-acquire-curve?Itemid=638