Could the Lloyds share price reach 60p in 2024?

The Lloyds share price has got off to a strong start in 2024. But could it reach 60p by the time the year is over? This Fool explores.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Art concept depicting the year 2024 with a bullseye target in place of the zero

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

As I write, the Lloyds share price sits at 53.3p. That’s a 10.9% gain from its opening price of 48.1p in 2024.

But what could the remainder of the year have in store for the stock?

Lloyds has been a serial underperformer in the last five years. During that time, its share price has lost 12.7% of its value. It has clawed back some gains in the last 12 months. But could it reach 60p this year?

Should you invest £1,000 in Tesla right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Tesla made the list?

See the 6 stocks

Created with Highcharts 11.4.3Lloyds Banking Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Time for 60p?

To reach 60p, Lloyds stock would have to climb a further 12.6%. If I were to do that, it means it would have risen 23.5% over the 12 months. That would be impressive.

That may not be realistic. In fact, I doubt the Lloyds share price will top 60p this year. The one-year price target for the stock is 59p.

Gaining momentum

But while we may not see the Black Horse Bank stride through the 60p barrier in 2024, its share price has been gaining momentum in the past few months and I think it’ll continue heading upwards in the months to come.

It seems many FTSE 100 banks have been held back by negative sentiment more than anything recently. But that looks like it’s changing.

What will drive it?

But what will drive this? Well, interest rates are one factor that will play a significant role.

They’re a double-edged sword. On one side, falling rates will see banks’ margins shrink. Lloyds has enjoyed a prosperous spell recently. Last year, its underlying net interest income rose by 5% to £13.8bn. Lower rates will see this come to an end.

But on the other side, rate cuts should provide the wider market with a boost, which could drive the stock’s price. I think that’s partly why the Footsie has been on a surge this year. Rate cuts look imminent and investors are gearing up for them. Many seem to be more bullish on UK shares right now than in years gone by.

Cheap value

That’s why I think Lloyds looks like great value for money trading on just 6.9 times earnings. That’s way below the Footsie average of 11. Looking ahead, that figure is predicted to drop to just above six by 2026.

Barriers to clear

Of course, rate cut talk is just speculation. And that highlights just how much uncertainty there is surrounding the economy at the moment. As a result, I’d expect more volatility going forward with Lloyds.

Inflation seems to be under control, but we’ve seen signs, both in the UK and US, that have reminded us that we’re not out of the woods yet.

Cash on the side

But I’m fine with some short-term peaks and troughs if I see long-term value, which I do with Lloyds. What’s more, while I wait for its share price to edge higher, I’ll happily receive the 5.2% dividend yield that the stock offers investors.

A long-term play

It may not be this year that we see the Lloyds share price surpass the 60p mark. But I’m confident that it will in the years to come. That’s why I plan to hold onto my shares. At their cheap price, I’d add to my holdings if I had the cash.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Charlie Keough has positions in Lloyds Banking Group Plc. The Motley Fool UK has recommended Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Passive income text with pin graph chart on business table
Investing Articles

How £100 a month could turn into £6,500 a year in passive income

With enough time, a 6.5% annual return can turn £100 per month into something that yields £6,500 per year in…

Read more »

happy senior couple using a laptop in their living room to look at their financial budgets
Investing Articles

Is now a good time to start investing in the stock market?

Predicting what the stock market will do in the next few weeks and months is nearly impossible. But over the…

Read more »

Close-up as a woman counts out modern British banknotes.
Investing Articles

£5,000 invested in Legal & General shares 10 years ago would have generated passive income of…

Legal & General shares are one of the highest-yielding in the FTSE 100. How much passive income could have been…

Read more »

Passive income text with pin graph chart on business table
Dividend Shares

3 world-class dividend stocks to consider for passive income

These three stocks could potentially help investors create a stable – and growing – stream of passive income in the…

Read more »

Group of young friends toasting each other with beers in a pub
Investing Articles

Diageo’s share price plunges 43% in 2 years! Time to consider buying the dip?

With sales falling, the Diageo share price is being hit hard. But with the shares now trading near 52-week lows,…

Read more »

Night Takeoff Of The American Space Shuttle
Investing Articles

The GGP share price skyrockets 100%+ in 2025 – Could this be the breakout stock of the year?

With the GGP share price more than doubling in four months, can Greatland Gold continue to thrive throughout the rest…

Read more »

Illustration of flames over a black background
Investing Articles

JD Sports’ share price soars 27% in just 3 weeks – is this the hottest stock to consider buying now?

The JD Sports share price is rising rapidly as management steers the business back on track. Can this upward momentum…

Read more »

Nottingham Giltbrook Exterior
Investing Articles

The Marks and Spencer share price stumbles on a cyberattack! Is it time to panic?

A disruptive cybersecurity breach has brought down Marks & Spencer’s online store, sending the share price tumbling. Should investors be…

Read more »