Investec downgrades Lloyds to 'sell' after recent share-price surge

18th May 2015 09:57

Lloyds is now rated as a 'sell' by Investec, which sees downside for the stock following its recent outperformance.The broker said the stock has "enjoyed a euphoric reaction" to its first-quarter update on 1 May and the result of the UK general election, taking its shares to a fresh 6.5-year high.It said that the share price is now more than up with events."We regard its Q1 performance as robust (but broadly in line with our formerly above-consensus forecasts)," said analyst Ian Gordon."As such, while consensus may have seen some catchup, we are not upgrading our numbers (at all). Moreover, on a 12-month view we expect a combination of statutory downgrades and share indigestion to curtail further progress."Investec maintained an 84p target price, but lowered its recommendation from 'hold'.The stock was down 1.3% at 87.85p by 11:40.