Lloyds Banking Group PLC (LSE:LLOY) remains Deutsche Bank (NYSE:DB)’s top pick among European banks and is an even bigger bargain after the market’s lukewarm results to its results.
The shares fell from 47.07p to 46.2p on the day of the results, a reaction Deutsche Bank described as “perplexing”.
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Having pored over the bank’s interims, Deutsche Bank has increased its forecast for an underlying profit before tax in 2020 by 6% while it has added 11% to its estimate of capital distribution – dividends plus share buybacks.
The price target has been nudged up by a penny to 57p.
The shares currently trade at 45.5p.