UK banks were hit by a round of share price target reductions by analysts at Deutsche Bank today.
Lloyds, Barclays and Virgin Money all got the red pen treatment, though Deutsche Bank still believes the outlook for the sector overall remains favourable.
"High inflation, high rates, low growth and relatively contained unemployment rates is overall a positive environment for UK banks earnings," said the German broker.
"At 5.4x 2024 P/E and 10% average yield UK bank valuations are particularly compelling. Our preference is for Lloyds and Natwest where we expect guidance upgrades and high capital return."
Lloyds nonetheless had its target price lowered to 61p, against 67p previously.
Barclay's target was cut to 210p from 230p and Virgin Money to 230p from 245p.
HSBC was the only bank to get an upgrade, to 570p from 500p, though it remains a 'hold'.