City's Banking Boffins Predict Rise in Lloyds and RBS Shares

Strategic Insights -

A return to the black might be on the horizon for British taxpayers, with two leading brokers predicting that Lloyds Banking Group and Royal Bank of Scotland will rise above break-even levels. Deutsche Bank has a 100p price target for Lloyds, while Evolution is a buyer of RBS with a 61p target. However, the Government is expected to wait for the September verdict of the Independent Commission on Banking before beginning to offload its stake in either bank.

Key Takeaways:

  • Deutsche Bank has named Lloyds its top pick among UK lenders, with a 100p price target, describing the bank as a "good bank in a good market".
  • Evolution is a buyer of RBS, with a 61p target, after a presentation to its sales team from the bank yesterday.
  • The Government is expected to wait for the September verdict of the Independent Commission on Banking before beginning to offload its stake in either bank.
  • RBS slid 0.2p to 41.6p, while Lloyds was up 0.1p at 68.9p.
  • Imagination Technologies, which designs video chips used in the iPhone, is acquiring Caustic Graphics for $27 million (£17 million) and has seen its shares rise 22.4p to 381.9p.
  • Betfair lost 114p to 1067p due to concerns about the trading outlook, while French Connection jumped 5½p to 77½p due to a short squeeze.
  • Renovo Group, a scar treatment specialist, has seen its shares rise 0.8p to 48.9p due to its full-year results, which showed revenues tripling, losses narrowing, and the company remaining well-funded.

Statistics:

  • Average Government purchase price for its shares in Lloyds: 63.2p per share.
  • Government holding in Lloyds: 41%.
  • Average Government purchase price for its shares in RBS: 50p per share.
  • Government holding in RBS: 84%.
  • Lloyds price target: 100p.
  • RBS price target: 61p.
  • Imagination Technologies share price: 381.9p.
  • Renovo Group share price: 48.9p.
  • Betfair share price: 1067p.
  • SCOTTISH AND SOUTHERN ENERGY: 1148p.

Sources:

  • Deutsche Bank
  • Evolution
  • Independent Commission on Banking
  • Imagination Technologies
  • Renovo Group
  • Betfair
  • Scottish and Southern Energy
  • Vattenfall
  • E.ON
  • Cheung Kong Infrastructure