logo-loader

Lloyds Banking Group: After the rout, leading bank gives its call on the sector

Published: 11:44 14 Mar 2023 GMT

Lloyds Banking Group PLC -

Is it time to buy Lloyds Banking Group PLC (LSE:LLOY) after the rout in the financial sector that has seen 8% wiped from its value in the past week and 13% in the last month?

According to Goldman Sachs (NYSE:GS), the European banking sector is healthy and well-capitalised.

As such the sell-off across the industry in the UK may offer what Goldman described as “upside opportunities” in the wake of the sell-off prompted by the failure of Silicon Valley Bank.

However, it wasn’t specific on where it currently sees value. It said: “The risk of direct banking sector contagion appears limited, as European banks’ exposure to US deposits is low, and the Euro area and UK banking systems are well capitalised with ample liquidity.”

However, it also provided this note of caution in a note to clients: “The US financial stress could lead to European banks curtailing lending to the real economy and therefore tighten broader financial conditions, amplifying the growth drag already underway.”

At 11.45 am, the shares were trading sideways at 47.43p – well shy of the consensus valuation of 65p. Of the 21 banks and brokerages following Lloyds, 17 are positive on the stock in the black horse bank.

FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

1 hour, 37 minutes ago