Will the Lloyds share price hit 60p this year?

What might drive the Lloyds share price to 60p this year? Christopher Ruane considers some opportunities and threats, then explains his next move.

| 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.

Shares in Lloyds (UK: LLOY) are already up by a third this year. The Lloyds share price has put on 55% over the past 12 months.

Can it hit 60p this year? Below I explore reasons it could – along with some risks that may hold it back.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

Why the Lloyds share price is rising

Why has the Lloyds share price been moving up lately?

Like other UK banks, the lender came out of last year’s financial crash in better shape than many analysts expected. It booked large provisions for possible loan defaults, but recently it has released some of those provisions.

The hot UK property market is another reason the bank’s shares are moving up. With a strong focus on its home market, Lloyds is highly exposed to UK housing. Ongoing strength in property sales bodes well for the bank’s outlook.

Additionally, the bank has restarted dividends. 

Possible headwinds for the Lloyds share price

But there are also concerns which could help push the Lloyds share price down again.

One is the economy. So far the economic recovery has been strong and the property market is buoyant. However, no one has a crystal ball when it comes to economic performance. Any housing downturn could lead to default rates rising again.

A lot of investors like myself are hoping Lloyds will raise its dividend as soon as it can. The bank has indicated that it plans to return to a progressive dividend policy. But for now the dividend remains constrained by regulatory requirements.

I think uncertainty about the future dividend and a lower payout level compared to several years ago are acting as brakes on the Lloyds share price.

Can the Lloyds share price hit 60p?

To hit 60p this year, the Lloyds share price would need to rise around 30%. That is a heady increase – but the shares have already risen by that much this year. I think they could do the same again. I see a number of potential drivers to help push the price upwards.

For example, the company’s current share price does not even match its tangible net assets. They were reported in last month’s quarterly results as 52.4p per share.

The company has been accruing dividends and at some point it will likely do something with this money. Even if it does not pay it out to shareholders, the cash pile is an asset that should help bolster the company’s value.

The yield is only 1.2% for now. However, the company has said it plans to resume its dividend programme “at a higher level than 2020.


If the bull case above is right, I do think the Lloyds share price could hit 60p this year. But there is no guarantee of that. While a new chief executive settles in, the bank’s performance could take a turn for the worse.

Meanwhile, the shares have already climbed a lot. That suggests that many investors have factored in a lot of the positive investment case. That could mean that it will be harder for the Lloyds share price to keep climbing in the absence of strong positive news flow.

My plan

I continue to hold Lloyds and look forward to receiving its dividend on 25 May. I am considering adding more to my portfolio. 

More on Investing Articles

Two hands holding champagne glasses toasting each other with Paris in the background
Investing Articles

Can the stock market make me rich even now?

Here are three ways I'm coping with the stock market's recent bout of weakness and aiming to build wealth in…

Read more »

Cogs turning against each other
Investing Articles

3 top investment trusts to buy right now

Investment trusts offer a wide range of options for investors. And in troubled times, they provide some safety through diversification…

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

Why hasn’t the FTSE 100 crashed in 2022?

The catastrophic events of 2022 have left investors around the globe fearing the worst for stock markets. And some have…

Read more »

Trader on video call from his home office
Investing Articles

2 inflation-resistant FTSE 100 stocks to buy today

Soaring inflation could dent my returns if I don't take care. Here are two top inflation-resistant FTSE 100 stocks I'd…

Read more »

Tabletop model of a bear sat on desk in front of monitors showing stock charts
Investing Articles

Why a bear market is an investor’s best friend

A bear market can certainly be scary. But any investor tempted to sell might benefit by looking at Warren Buffett's…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

The Rolls-Royce share price could be stuck below £1 for a while. Should I buy?

The Rolls-Royce share price has been trading at penny stock levels since April. Could the stock be a bargain at…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

I’m aiming to make £45,000 in passive income with UK shares and never work again!

Investing regularly in UK shares can generate a substantial passive income over the long run. Zaven Boyrazian demonstrates how.

Read more »

Portrait of construction engineers working on building site together
Investing Articles

Down 30%, are CRH shares a screaming buy?

The CRH share price has slumped this year. Roland Head asks if this overlooked FTSE 100 share could be a…

Read more »