Morgan Stanley reiterated an overweight rating on Lloyds Banking Group PLC and raised its price target to 135 GBp from 125 GBp. The upgrade follows the company's dividend growing at a compound annual growth rate of 43.49% over the past five years. Lloyds reported a statutory profit before tax of £2.0 billion for the first quarter, with return on tangible equity at 17%. For the full year, the bank expects net interest income to exceed £14.9 billion and return on tangible equity of more than 16%, while structural hedge income is projected to grow by more than £1.5 billion to £7 billion by year-end and to £8 billion by 2027.
Lloyds Banking Group PLCMorgan Stanley raised price target and reiterated overweight rating, citing strong dividend growth and positive earnings outlook.