Broker Flash: Lloyds Banking Group Plc target rating from Exane BNP Paribas

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Broker Flash: Lloyds Banking Group Plc target rating from Exane BNP Paribas

Details: Category: Share Price Drivers; Published on Monday, 11 February 2013 10:35; Written by Will Peters

Update: LLOY surges by 5.12 pct in Tuesday trader to close at 55.45. The stock has benefited from an increased confidence amongst investors concerning the future of the UK banking sector. RBS and HSBC were also higher in sympathy.

The catalyst for the gains was Barclays who's investment banking business beat analyst expectations in its latest performance report. (More on Barclays here).

Meanwhile, Lloyds Banking Group plc (LON:LLOY) was on Monday kept at an Outperform rating with Exane BNP Paribas.

The French investment bank has maintained its Outperform rating on LLOY while keeping a price target of 63.

Latest news items:

Markets: Asia fails to provide direction

"European stock markets are broadly flat Monday, with a lack of direction from Asia overnight as most markets there were shut for holidays. At the same time, no meaningful economic data due in Monday leaves the market without a clear catalyst to energise direction," says Ishaq Siddiqi at ETX Capital.

French industrial production numbers are only the noteworthy data released Monday and the report is not as bad as feared.

Industrial output in France fell 0.1% in December from November, versus forecasts for a 0.2% decline in December.

The outcome still does not instil any confidence surrounding France's industrial activity but could offer the Paris index a degree of support in the session.

Monday will see the start of a euro zone finance ministers' meeting in Brussels where policymakers will discuss a topic on the markets' lips, currency wars.

"Much of the discussion however will centre around Cyprus following the country's recent bailout. The euro's recent strength impacting the exchange rate is also likely to be discussed after ECB chief Mario Draghi said the central bank are monitoring the currency's advance," says Siddiqi.

Economics: UK economy recovering again say Lloyds

A slowdown in the last months of 2012 was reversed in January following a jump in activity, according to the Lloyds TSB regional purchasing managers' index.

Eight of the nine regions in the study expanded output with Yorkshire and Humber recording the fastest rate of growth.

The rebound also encouraged firms to hire more staff, confirming a Recruitment and Employment Confederation survey last week that showed an increase for the fourth consecutive month in permanent jobs coupled with a rise in starting salaries.