Opinions Darren Sissons
Lloyds Banking GroupLLOY.LDON'T BUYSep 11, 2018
Darren SissonsUnknown
N/A
Stock price when the opinion was issued
$55.68
As of Jun 24, 2024. Market Open.
Financial Services
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DON'T BUY
All banks have been clobbered. He'd rather buy a Canadian bank or MS. The UK housing market is a question mark for 12 months. Lloyds will bear loan losses heavier than its peers.
Financial Services
DON'T BUY
He doesn't recommend any European or UK banks. They were hoping to expand beyond mortgages (where they led) to investment products, personal lines of credit and small business loans. It's unclear they succeeded. There are a lot of banks in the UK and it's difficult to stand out. Also, Lloyds faces competition from the Americans who don't have a legacy loan book. Also, more of the UK/Euro market is moving to corporate bonds and away from whole loans. Lloyds is more of a personal lender, though.
Financial Services
WEAK BUY
Brexit impacts? The Brexit overhand is likely already priced into UK equities. Lloyds tend to be a very domestic based bank, so if the economy lags there it will get hurt more than more international banks. Overtime, taking in a longer time view, you could probably buy here, but he would prefer a more international bank.
Financial Services
WEAK BUY
European banks are becoming more stable. It has had a good bounce as a hard Brexit is looking less likely. This is the best UK bank as it trades around book value. He would complement this along with a large US bank for growth and a Canadian bank for the dividend. Yield 3.6% plus an annual special premium.
Financial Services
WEAK BUY
Lloyds vs. ING Bank among European banks Loves and owns ING. Their capital ratios look great. The Dutch government fined them in the last quarter. All Euro banks in the past were bailed out by government, but ING has come back in gangbusters. He prefers ING to Lloyds. Lloyds still has the Brexit overhang. All European banks are now cheap (book value, PE). Now is a buying opportunity both stocks.
Financial Services
TOP PICK
Really, really cheap and has a great yield of 5.3%. One of the best capitalized banks in all of Europe. They got pounded in this whole BREXIT thing. Have come up a little since then, but is still dirt cheap. Trading at about 7.7X multiple, which is cheaper than the US banks and cheaper than anything else. They are basically a capital return story. The yield is going to stay there or go higher. Thinks there is going to be a lot of upside.
John StephensonOwned
Financial Services
U.S. interest rates are rising, so European rates will follow--this will benefit financials with higher profits. He owns some European banks. There is upside with Lloyds. It has cleaned up its mess. If you're underwater here, you will be fine in the long run. You can buy it now and hold it.