What does the latest analysts accept for investors mean the price of Lloyds shares?

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Over the past year I have got used to the vision of stubborn broker forecasts for Lloyds Banking Group (LSE: lloy) Price of shares.

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But looking at the last January summary with London Stock Exchange GroupI am surprised that the consensus has lowered to neutral. Only three months ago we had a solid consequences of the purchase.

And out of five analysts out of 17, who had shares as a mighty purchase three months ago, only two of them still assess Lloyds so high. What should private investors do about it?

Mixed reaction

First of all, I think we have to sit down a bit and take this kind of things in our step. In the end, opposing is always looking for those whose people are wrong, right?

Short -term uncertainty is burdened with professionals. And this is a kind of uncertainty that long -term stupid investors are able to get over it better. But at the same time I would never ignore what the city says about any wrestling I am interested in. This is a very part of my strategy to consider all opinions before I decide on my own mind.

Many recent events have changed the compact -term landscape for Lloyds. This is not the least, the price of the action, which increased by 48% in the last 12 months, although not similar to the doubles achieved by Barclays. Maybe Lloyds was a screaming purchase a year ago, but the screams now seems quieter.

The destination price of the consensus is currently only about 65 pence. These are just a few pennies above the current price, so it can be everything that lies behind the softening attitude.

Threats

Lloyds was recently in news about what many can see as a disturbing reason. Plans to close another 136 branches. This is about 10% of the whole in Great Britain and makes the term “bank on the main street” seem more and more historical.

However, this is not bad news for shareholders, because it is really only part of the growing transition from cash to digital transactions. If anything should reduce the costs and, hopefully, facilitate maintain profit margins. It doesn’t make me less attractive.

The ongoing investigation into a car loan is more disturbing. The recent intervention Chancellor Rachel Reeves fell slightly my nerves. The Supreme Court insisted that “Any medicine should be proportional to the loss actually suffered by the consumer and avoid giving full form“.

This can facilitate relieve the fears that Lloyds can be hit by up to £ 1.5 billion.

Why buy?

We look at the forecast price ratio to profit (p/e) of 10, on the low side FTSE 100 Standards. But in the current economy I think it can be appropriate. The dividend performance is 4.6%, which I assess as decent for the bank. This is not the best, with HSBC Holdings on the expected 5.8%.

However, taking into account my positive view on long -term prospects for bank and mortgage lenders, I keep my lloyds shares. And I saw myself in the future.

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