The Main Points
- Lloyds shares are projected to reach 136.8p by the end of 2027, an 18.3% gain from the 114.7p level seen at the end of July.
- The bullish case points to a 30% jump in the interim dividend and EPS growth of 26.3% to 4.8p.
- Consensus estimates call for EPS of 12p for fiscal year 2027, with shares currently trading at a forward P/E of 11.4x.
- Lloyds is also running a £1 billion share buyback program alongside continued profit growth and managed expenses.
- Risks to the outlook include weak UK economic growth and lingering costs tied to legacy scandals.