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Will the Lloyds share price hit 60p this year?

first_img Our 6 ‘Best Buys Now’ Shares Shares in Lloyds (UK: LLOY) are already up by a third this year. The Lloyds share price has put on 55% over the past 12 months.Can it hit 60p this year? Below I explore reasons it could – along with some risks that may hold it back.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Why the Lloyds share price is risingWhy has the Lloyds share price been moving up lately? I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. christopherruane owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Image: Lloyds Banking Group Enter Your Email Address Christopher Ruane | Wednesday, 12th May, 2021 | More on: LLOY Will the Lloyds share price hit 60p this year? Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Like other UK banks, the lender came out of last year’s financial crash in better shape than many analysts expected. It booked large provisions for possible loan defaults, but recently it has released some of those provisions.The hot UK property market is another reason the bank’s shares are moving up. With a strong focus on its home market, Lloyds is highly exposed to UK housing. Ongoing strength in property sales bodes well for the bank’s outlook.Additionally, the bank has restarted dividends. Possible headwinds for the Lloyds share priceBut there are also concerns which could help push the Lloyds share price down again.One is the economy. So far the economic recovery has been strong and the property market is buoyant. However, no one has a crystal ball when it comes to economic performance. Any housing downturn could lead to default rates rising again.A lot of investors like myself are hoping Lloyds will raise its dividend as soon as it can. The bank has indicated that it plans to return to a progressive dividend policy. But for now the dividend remains constrained by regulatory requirements.I think uncertainty about the future dividend and a lower payout level compared to several years ago are acting as brakes on the Lloyds share price.Can the Lloyds share price hit 60p?To hit 60p this year, the Lloyds share price would need to rise around 30%. That is a heady increase – but the shares have already risen by that much this year. I think they could do the same again. I see a number of potential drivers to help push the price upwards.For example, the company’s current share price does not even match its tangible net assets. They were reported in last month’s quarterly results as 52.4p per share.The company has been accruing dividends and at some point it will likely do something with this money. Even if it does not pay it out to shareholders, the cash pile is an asset that should help bolster the company’s value.The yield is only 1.2% for now. However, the company has said it plans to resume its dividend programme “at a higher level than 2020”. RisksIf the bull case above is right, I do think the Lloyds share price could hit 60p this year. But there is no guarantee of that. While a new chief executive settles in, the bank’s performance could take a turn for the worse.Meanwhile, the shares have already climbed a lot. That suggests that many investors have factored in a lot of the positive investment case. That could mean that it will be harder for the Lloyds share price to keep climbing in the absence of strong positive news flow.My planI continue to hold Lloyds and look forward to receiving its dividend on 25 May. I am considering adding more to my portfolio.  Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Christopher Ruanelast_img


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