Lloyds Bank share price resumed its uptrend on Wednesday, rising by 3.1% at the time of writing to trade at GBX 73.64. The stock has been on a strong uptrend since releasing its quarterly earnings report about two weeks ago. Lloyds Bank (LSE: LLOY) has gained in eight out of the last ten trading sessions, underlining a strong bullish hold.
The strong upward momentum is propelled by renewed optimism over the bank’s performance after a period overcast by concerns around compensation settlements for motor vehicle mis-selling scandal. Despite missing EPS estimates by $0.04, the bank announced a £1.7 billion share buyback program, affirming a strong growth outlook for 2025.
The bank’s pre-tax profits also missed analysts’ forecasts, coming in at £5.97 billion against £6.39 billion. However, investors seem unbothered by the decline, as it is mostly as a result of a £700 cheque set aside to cover for potential compensation claims arising from the vehicle mis-selling scandal. That brought the bill assigned to cushioning the bank against the scandal to £1.2 billion.
Meanwhile, Peel Hunt analysts have upgraded their price target for Lloyds Bank share price in 2025 to 70p, a 17% rise from the previous price, maintaining a “hold” rating on the stock. That indicates strong fundamentals on the bank and favours continued upside.
Lloyds Bank Share Price Prediction
The Average Directional Index (ADX) reading on Lloyds Bank share price is at 42 on the daily chart, signaling a strong upward trend. The stock pivots at GBX 73.30 and action above that level signals control by the buyers. The first resistance will likely be at GBX 74.00, but a stronger momentum will clear that barrier and potentially test GBX 74.60. Breaking above that barrier could put it on its way to hit 75p.
Conversely, the momentum could shift to the downside if Lloyds Bank share price breaks below GBX 73.30. That will likely see the first support established at GBX 72.72. However, an extended control by sellers will break below that level and invalidate the upside narrative. Also, that momentum could extend and test the second support mark at GBX 72.00.
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