Lloyds (LLOY)

Unsurprisingly, the UK’s best-loved blue-chip stock is also the UK 100 ’s cheapest. Having been bailed out by the taxpayer in 2008, Lloyds was fully re-privatised in 2017, which has helped shares climb to their highest level since last year’s Brexit vote. Whilst the UK’s snap general election created an uncertain outlook for the UK’s largest mortgage holder, and despite the race being much closer than expected, some of that uncertainty has been abated. As the UK’s Brexit negotiators head to Brussels, can Lloyds rally to fresh post-referendum highs?

Will shares rally to fresh 2017 highs of 73.5p (+3.8%) or pull back towards May lows of 68p (-4.0%)?

• Shares breakout from 70p intersecting resistance after rallying from shallow rising support at 68.5p
• 71% of brokers see upside to the current share price, while 29% see the price falling
• Stochastics recovered from oversold while Momentum negative but approaching zero
• Bullish cross by Directional Indicators

Broker Consensus: 59% Buy, 15% Hold, 26% Sell

Bullish: RBC Capital Markets, Outperform, Target 90p, +27% (2 Jun)

Average Target: 72.5p, +2.4% (8 Jun)

Bearish: Bernstein, Underperform, Target 40p, -45% (26 May)

Pricing and consensus data sourced from Bloomberg on 8 June. Please contact us for a full, up to date rundown.