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Government nets £3.2bn from 'impeccably timed' Lloyds stake sale
by Dylan Lobo on Sep 17, 2013 at 08:02
‘Whilst we expect regulatory uncertainty to hang over the sector, Lloyds should be in a position to deliver a good level of shareholder returns looking forward.’
Others were less enthusiastic about the bank's prospects.
Investec Securities bank analyst Ian Gordon repeated his sell rating on the stock, highlighting is valuation is close to a five-year high after it share price more than doubled since last June.
Gordon described the government's timing and sees every chance the government could be completely out of the bank before the Election.
However, while he accepts this is positive news for the bank, he finds it hard to bullish on Lloyds following its meteoric rise over the last 12 months or so.
'From a Lloyds perspective, our view is that little has changed as a direct consequence of this transaction,' Gordon said.
He added: 'We see the tail-risks which attach to Lloyds as significantly diminished,' Gordon said. 'We believe that inceremental misselling charges will be well below the £8.2 billion cumulative redress provisions of the past 30 months.'
'We retain our sell recommendation and 65p price target.'
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