Lloyds (LSE:LLOY) shares have experienced a pretty tepid 2026 so far, rising by a measly 2.6%.
However, they’ve enjoyed the couple of Stronger years before that. They closed 2023 at 47.71p apiece. Currently they rest at 101.85p.
Investors who’d put money in the bank’s shares in the few years before 2024 would have therefore been greatly rewarded, with their value more than doubling.
But in the present day I know those reading will be more interested in where Lloyds shares might be in the future. This is what I think they can reach by the end of 2027.
Computing a future valuation
Looking at the table below, we can see what analysts think the company’s revenue and earnings per share (EPS) will look like for 2026 and 2027, compared to its 2025 results:
| Year | Revenue | EPS |
| 2025 | £19.8bn | 0.07p |
| 2026 | £21.8bn | 0.1p |
| 2027 | £23.4bn | 0.12p |
I’m going to use the firm’s current price-to-earnings (P/E) ratio of 13.4 to try to formulate the value of its shares over the next couple of years based on these forecasts.
Based on the expected EPS of 0.1p in 2026, the company’s shares should be worth 133.6p each. That’s a 31.2% rise from the current price.
With analysts predicting an EPS of 0.12p in 2027, the company’s shares should be worth 160.32p apiece. That’s a 20% rise from the 2026 expected share price, and a 57.4% increase from the current price.
Based on this simple analysis, Lloyd’s shares definitely look very compelling. But investors should bear in mind that this isn’t guaranteed and that there are many other variables to consider.
Not so simple
While the above analysis points towards the company’s shares enjoying a lovely future, there are also other aspects to consider.
Firstly, although its shares aren’t exactly expensive, compared to other banking stocks, they’re not exactly cheap. Here are the P/Es of some others:
- Natwest: 8.5
- Barclays: 10.5
- HSBC: 15.5
- Standard Chartered: 12.9
With its P/E of 13.4, only HSBC shares are more expensive than Lloyds shares. Therefore, they might not necessarily see such share price appreciation as illustrated above, as they’re already relatively expensive.
Also, it’s worth bearing in mind that the analyst forecasts above are only averages. Some analysts are predicting lower EPS growth.
Moreover, many events could occur that could hamper these predictions. For example, the tragic war in Iran could continue to wreak havoc on the global economy, which could hurt banks’ shares.
Still plenty of reasons for optimism
There are risks to holding Lloyds shares, but there are also reasons for optimism.
Looking at the company’s first-quarter results for 2026, we can see that underlying net income was up by 9%, statutory profit after tax was up by 37%, and EPS rose 0.7p to 2.4p.
What I like most is the margin expansion. Total costs only increased by 3%. These are good signs that the business is heading in the right direction.
Furthermore, savvy readers would have spotted above that analysts are also projecting margin expansion, as revenue, while still growing strongly, is outpaced by EPS growth.
If investors also have a positive outlook for the company, they may want to consider buying some of its shares.
Should you invest £5,000 in Lloyds Banking Group Plc right now?
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Muhammad Cheema does not hold any positions in the companies mentioned.
