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Lloyds‘ (LSE:LLOY) shares have been firing on all cylinders over the last 12 months, climbing by an impressive 84%. Not only has this momentum pushed the bank stock to its highest level since 2008, but it’s even allowed Lloyds to surpass the long-awaited 100p threshold. Yet, this might be just the tip of the iceberg.
With Lloyds shares already climbing by over 15% since 2026 kicked off, could the bank be on track to surpass 150p later this year? Here’s what the experts are saying.
The bull case
Lloyds’ ongoing momentum is being driven by a variety of factors. Higher interest rates alongside clever hedging have enabled the bank’s lending margins to expand considerably. And subsequently, the group’s now expected to deliver a 9.6% increase in net interest income during 2026, reaching £14.9bn.
Combining this higher profitability alongside improved operational efficiency has also translated into a steadily increase in the firm’s Return on Tangible Equity (RoTE).
This all-important efficiency metric reached 15.7% in the final quarter of 2025. And if management’s guidance proves accurate, RoTE will climb even higher in 2026, surpassing 16%, putting it ahead of most of its rivals.
What the experts are saying
Needless to say, an incoming increase in profits bodes well for the Lloyds share price. And when combined with incoming shareholder distributions through both dividends and buybacks, the analyst team at Deutsche Bank believe that the bank stock will rise to 125p over the next 12 months.
But what about 150p? As things stand, no leading financial institution has put a milestone share price target on Lloyds shares in 2026. However, looking beyond the next year, reaching this threshold isn’t an unreasonable expectation if the bank can continue delivering strong results.
Of course, none of this is guaranteed. Forecasts aren’t set in stone, and even the experts at Deutsche have highlighted some crucial risks. So what do investors need to look out for?
What to watch
Lloyds is highly exposed to the UK economy, which isn’t exactly in terrific shape right now. Unemployment’s slowly ticking up, taxes are on the rise, and stronger growth continues to prove elusive.
That doesn’t bode well for lending institutions like Lloyds, and it increases the risk of credit impairments as both individuals and businesses struggle to keep up with payments.
At the same time, with the Bank of England steadily cutting interest rates, Lloyds’ lending margins may also soon come under pressure.
The group’s interest hedges have proven effective so far, but sadly, these don’t last forever. And while the bank can aim to offset lower margins with higher lending volumes, that might prove difficult if UK economic weakness persists.
What’s the verdict?
For investors seeking explosive growth, Lloyds’ shares are likely not a great fit. But for more conservative income-oriented portfolios, the bank’s 3% yield does make a potentially compelling case that might be worth investigating further. And it’s not the only promising opportunity within the financial sector I’ve spotted this week.
