Fund managers are queuing up to buy the shares, even banks sceptic Neil Woodford just added the stock to his Woodford Equity Income fund. Now, a respected City analyst has had a change of heart and gone all positive on the revitalised lender.

Just a month after trimming his price target on Lloyds to 66p - mostly to factor in recent dividend payments — Deutsche Bank's David Lock has revisited the numbers and now believes the bank could be worth substantially more. There are four reasons, explains Lock: It now exceeds levels recorded at the end of when Lloyds still owned TSB. This is important as net interest margin had been improving, but NII had not because of falls in average interest earnings assets. However, "these are far lower than historical periods which should see underlying and statutory returns converge".

There's also "greater capacity for dividends than we had previously forecast" following a common equity tier 1 CET1 ratio of Management could also consider buybacks, which has been well received by the market for HSBC in the last 12 months.

Lock pencils in 4. In terms of valuation, Lock now has Lloyds trading at 9. The European average is 1. Lloyds now screens too cheap within Europe banks in our view. Stripped back, Deutsche values Lloyds using both sum-of-the-parts SOTP and dividend-discount-model DDM methodologies.

Its price target is an average of the two. SOTP gives 70p and DDM 87p. This how to buy shares uk lloyds is for information how to buy shares uk lloyds discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred fastest way to make money in eve in this article may not be suitable for all investors, and if in doubt, who regulates investment brokers investor should seek advice from a qualified investment adviser.

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