The Lloyds Banking Group (LSE: LLOY) share price is in negative territory in 2026, and it’s mostly down to a fall on Q1 results day Wednesday (29 April). At the time of writing, Lloyds shares are down 1.8% on the day — and 1.4% year to date.
The actual results show a solid performance to start the 2026 year. But one broker, at least, isn’t impressed. Shore Capital has Lloyds as a Sell, on the basis that the latest results were already baked into the share price — implying there’s little room for safety.
So what did the quarter actually look like? Highlights include…
- Statutory profit before tax up 33% year on year
- Underlying net interest income up 8%
- Operating costs reduced by 3%
But one thing Shore points out is that the Lloyds share price is around 1.7 times tangible net asset value, which it sees as too high. So should I dump my Lloyds shares? I don’t feel any urgent need to hit the Sell button, but we do need to dig a bit deeper.
Short-term targets
I’m sympathetic to a potential asset-related overvaluation. And with Lloyds so heavily into the UK’s mortgage market, I think that might weigh on sentiment. Especially as the latest expected round of inflation and economic squeeze could put more pressure on asset values.
But even Shore’s bearish Lloyds share price target helps to reassure me a little. It’s at 91p, and only 6% below the price at the time of writing. If I sold shares every time I thought they might be 6% overvalued, and bought when they looked 6% undervalued… I’d quickly spend all my money on trading fees.
I want to think beyond the latest numbers themselves — which are just a short-term snapshot, at a confusing time for economic and company outlooks. And I’m struck by something CEO Charlie Nunn said…
Our differentiated business model remains resilient in the context of the current economic uncertainties. We remain focused on supporting UK households and businesses as they look to strengthen their financial positions and achieve their goals.
Trust in the UK?
Buying Lloyds shares is very much an investment in the UK itself. And it does come without the direct global worries that afflict other banks — though in addition to not enjoying their international opportunities. So an obvious question for potential investors arises in my mind: do you have confidence in the long-term future of British businesses?
My personal answer is yes. Otherwise, how could the UK stock market have so soundly beaten other forms of investment for well over a century?
Inflation and interest rates are indeed threats for Lloyds. And valuation concerns in the light of current uncertainties are real ones. Valuation fears — after a 113% rise over five years — could alone mean a further weak spell for the Lloyds share price.
But I’m holding. And I don’t think investors should write off considering Lloyds shares — though waiting another few months for more clarity might help.
