Lloyds share price has been upgraded by analysts: don’t buy it yet

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Lloyds (LON: LLOY) share price could jump sharply in 2023 even as the economic crisis in the UK continues. The stock, which was trading at 48p on Tuesday, could jump by double-digits, according to City analysts. 

Jefferies and RBC are bullish on Lloyds

Earrlier this month, analysts at RBC Capital Markets, boosted their outlook for the Lloyds share price, saying that it was well-positioned to weather the recent banking crisis. They also cited the growth of interest income because of the rising interest rates. 

Further, the analysts expect that the company will announce a restructuring program this year. RBC decided to upgrade the outlook for the stock to 70p, which is ~48% above the current level.

The most recent analyst upgrade came from Jefferies. In a note, the analysts said that the shares could jump by 58% this year to 77p. They expect that the company will improve its margins and increase their returns to shareholders through share buybacks. 

Another catalyst is that the company is talking with pension trustees about the mode of payment. Expectations are that it will end the variable contributions, which will free about 1.2 billion pounds annually. If all these happen, these analysts expect that Lloyds share price could jump to as high as 87p this year.

Other analysts with a positive view of Lloyds are from Berenberg, Shore Capital, Credit Suisse, and Barclays. 

Lloyds Bank will have a chance to talk about its business when it unveils its financial results on May 3. Analysts expect that its business did well in the first quarter, helped by the relatively higher interest rates in the UK. In the most recent results, the company warned that boost from higher rates had peaked.

Lloyds share price forecast

LLOYchart by TradingView

Lloyds stock price has been a bit boring this year as it has underperformed the FTSE 100 and FTSE 250 indices. It remains about 11% below the highest level this year, meaning it has moved into a correction. Over the years, the shares have failed to move above the key resistance point at 55.95p. 

Therefore, despite the positive statements by analysts, I believe that Lloyds is not a worthy investment at the current price because of its long track record of disappointing buyers. Instead, I can only recommend buying the shares if buyers manage to push it above the key resistance at 55p.

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