The Lloyds share price has had a powerful opening to the month after investment bank Deutsche Bank ruled the stock to be a “BUY” following a stronger-than-expected boost in capital and income.
Lloyds share price rose 7% in October on a more robust economic rebound and expectations that rising inflation would force the Bank of England into an earlier-than-expected rate hike. In its first earnings report under new CEO Charlie Nunn, the bank reported total net income of £4.1bn for the third quarter of 2021. This was a 20% increase from the same period a year earlier. Profit before tax doubled from a year earlier, coming in at £2bn. Underlying profit rose 88% to £2.2bn, beating forecasts of £1.3bn.
The bank’s stellar performance in Q3 2021 has prompted Deutsche Bank to raise its outlook for the stock, setting a price target of 60p.
As of writing, Lloyds share price was up 1.75%.
At present levels, the stock still has room to navigate to the upside to attain the 60p price mark set by Deutsche Bank. However, this move requires the bulls to take out the current resistance at 51.02, with 52.09 also serving as an additional barrier to the north.
On the flip side, a retracement following rejection at the current support targets 50.44 initially. 49.20 and 48.12 are additional targets to the south, along with 46.61. Any of these may serve as dip-buying pivots as long as the uptrend remains intact.
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This post was last modified on Nov 01, 2021, 13:07 GMT 13:07