Lloyds down 5%; Now the time to buy?

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

28 October 2015

Lloyds down 5%; Now the time to buy?

Q3 results disappointed, with profits growth shy of consensus and another PPI charge
Shares back around lows of a 10-week range
Lloyds considered by many as pick of the sector in terms of recovery and dividend yield potential
Strong play on UK economic recovery and resilient UK housing market
Banks set to benefit from any interest rate hike
Shares trading below broker consensus target of 91p, implying 23% upside from current levels
Broker 12-Month Consensus: 57% Buy, 30% Hold, 13% Sell (full breakdown on request; Bloomberg)
CFDs tradeable with just a 5% margin

Technical Observations - For

Shares in clear 2-month range
Back near 18-month rising lows 72p
RSI & Stochastics oversold
Support at recent lows 73.5p

Price Chart: 2-month (hourly)

Technical Observations - Against

Bearish Cross by directional indicators
Momentum dropped negative
MACD still positive and rising
Volumes declined off lately

Broker Price Targets;

Most Bullish 105p, Consensus 91p, Most Bearish 55p

Lloyds Banking Group (LLOY), through subsidiaries and associated companies, offers a range of banking and financial services. The Company provides retail banking, mortgages, pensions, asset management, insurance services, corporate banking, and treasury services. (UK 100 )

**Source: DowJones Newswires, Reuters News or Company Press releases, Bloomberg.com

Share	1wk	1m	3m	1yr	2yr	3yr	4yr	5yr
Perf %	2.4	2.5	-1.6	2.7	-3.7	91.3	108.8	12.0

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28 October 2015