The average analyst price target for Lloyds shares is currently 90.7p. If that was to be achieved, investors could be looking at returns of about 12% over the next year when dividends are factored in. That’s a solid return.
However, analysts see far more potential in these three stocks…
An undervalued blue-chip stock
In the large-cap space, analysts are very bullish on shares in London Stock Exchange Group (LSE: LSEG). Currently, the average price target here is 12,739p – 35% above the current share price.
The bullish stance here makes sense to me (I’m invested in this company). Today, LSEG’s one of the world’s leading providers of financial data to banks and investment managers.
However, right now, this isn’t reflected in its share price. Currently, the company’s trading on a price-to-earnings (P/E) ratio of just 21 using the 2026 earnings forecast, which is a low valuation for a software company with recurring revenues and a blue-chip institutional client base.
Now, there’s no guarantee analysts’ price target will be hit, of course. Especially if near-term growth’s weaker than expected.
I believe there’s value on offer here however. I’ve been buying the stock recently and I think it’s worth a look.
Potential for gains and income
In the FTSE 250, Pollen Street‘s (LSE:POLN) a stock analysts like. It’s a fast-growing alternative investment manager that offers private equity and private credit strategies.
The average price target here is 1,051p. That’s about 25% above the current share price, signalling that analysts see strong returns ahead in the medium term.
It gets better though. At present, this stock has a 6.6% dividend yield, so it could be a cash cow too.
I think this stock looks really interesting right now and is worth checking out. The alternative investment industry is growing at break-neck speed today yet this stock can still be picked up on a P/E ratio of 10.7 with a yield of 6.6% – what a deal.
Of course, some kind of freeze-up in the financial markets is a risk in the short term. Taking a long-term view however, I see a lot of potential and think it’s worth further research.
A scalable small-cap company
In the small-cap arena, analysts expect Keystone Law (LSE: KEYS) to do well. It’s a law firm that operates a scalable platform model in which lawyers can work remotely.
The average price target here is 795p. That’s about 33% above the current share price.
I think 795p’s achievable in the medium term as this company’s growing at a healthy rate and the valuation isn’t high. But a lot will depend on the UK economy as the legal industry is quite cyclical in nature.
If the economy rolls over, this stock could underperform. That said, if the economy experiences a period of weakness, Lloyds – which is often viewed as a proxy for the UK economy – is likely to underperform as well.
I like the scalable nature of this company however, and believe it’s worth considering as a long-term investment. It’s also worth noting that this stock has a yield of about 3.4%. So it offers potential for income too.
