Investec upgrades Lloyds from 'sell' to 'hold', but prefers other banks

7th Jul 2015 10:20

Investec has lifted its rating for Lloyds 'sell' to 'hold,' and upped its price target from 84p to 86p.Analyst Ian Gordon said a recent price correction meant the bank was close to fair value, and he was encouraged by the rapid sell down of the UK government's stake.However Investec preferred One Savings Bank, RBS, HSBC, and Barclays to Lloyds.Gordon said in a note investors should buy back borrowed securities to close shorts immediately."We continue to believe that 2015 consensus expectations remain a little too high," the analyst said.Investec said current consensus failed to fully reflect the likely chance of charges relating to how it handled payment protection insurance, and any potential 'settlement' of its enhanced capital note court case.Shares in Lloyds were up 1.1% to 85.08p on Monday at 10:50.