Lloyds Banking Group PLC (LSE:LLOY) has its target price nudged higher to 60p (55p) by analysts at Peel Hunt
Earnings estimates have also been tweaked higher, but Peel Hunt says the main reason for the upgrade is that net interest margins this year are now likely to exceed 290 basis points (2.9%) by more than expected.
Lloyds' original guidance was set in February but things have changed since, notably higher for longer UK interest rates, asset mix changes and structural hedge dynamics.
'Hold' remains the broker's recommendation but it adds longer-term prospects have improved as has confidence in the sustainability of current return levels.