RBC cuts target for Lloyds Banking stock from GBp 124.00 to GBp 115.00

Lloyds Banking (ISIN GB0008706128) was downgraded to Sector Perform from Outperform by RBC Capital on October 16, 2026, which cut its target from GBp 124.00 to GBp 115.00, as Markets Insider reported. The new target is 12.85 percent above the LSE price of GBp 101.90 on October 27, 2026 at 4:09 p.m. BST. Lloyds Banking was trading at EUR 1.22 at Lang & Schwarz on October 27, 2026 at 4:04 p.m. CEST, unchanged versus the Xetra close of October 26, 2026 at EUR 1.22.

First-half profit reached GBP 3.10 billion

The bank's latest reported figures provide a stronger operating reference than the target cut alone. In the first half of 2026, Lloyds reported GBP 9.70 billion of net income, up 9 percent year over year, while statutory profit after tax rose 23 percent to GBP 3.10 billion, according to Lloyds Banking Group. Return on tangible equity reached 17.10 percent, compared with 14.10 percent in the first half of 2025.

Lloyds stock stays below its yearly high

On the London Stock Exchange, the stock traded at GBp 101.90 on October 27, 2026 at 4:09 p.m. BST. Its 52-week range was GBp 84.64 to GBp 123.10, placing the price 17.22 percent below the high and 20.39 percent above the low. Market capitalization stood at GBP 58.4 billion, with a price-to-earnings ratio of 12.63 and a dividend yield of 0.04 percent.

What follows the target cut?

The next scheduled corporate date is October 29, 2026, when Lloyds will publish its third-quarter 2026 results. The company said its finance chief will host the results presentation at 9:30 a.m. that day through its investor calendar.

Comparison with peers

• Lloyds Banking: unchanged, P/E 12.63, market capitalization GBP 58.4 billion.
• Barclays (LSE, GBp): down 0.11 percent, P/E 8.31, market capitalization GBP 55.8 billion.
• NatWest Group (LSE, GBp): down 1.49 percent, P/E 8.47, market capitalization GBP 50.2 billion.

Target cut meets a near-term date

RBC's revised target places the debate on deposit competition and lending margins ahead of the October 29 results. Lloyds enters that date with first-half profit growth of 23 percent and a 17.10 percent return on tangible equity.

The stock was trading at EUR 1.22 at Lang & Schwarz on October 27, 2026 at 4:04 p.m. CEST, unchanged versus the Xetra close of October 26, 2026 at EUR 1.22. The further course of trading is shown by the continuously updated real-time quote of Lloyds Banking stock.

Market context: Market report FTSE 100.

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