Bank of America Securities Reiterates a Hold on Lloyds Banking Group (LYG)

Lloyds Banking Group plc (NYSE:LYG) is one of the best undervalued stocks to buy under $10. On January 29, Bank of America Securities reiterated a Hold rating on Lloyds Banking Group plc (NYSE:LYG) and set a price target of p110.00. The rating update came the same day Lloyds Banking Group plc (NYSE:LYG) announced its financial results for 2025. It reported diversified revenue growth across the business, delivering £1.4 billion of annualised additional revenues from strategic initiatives in 2025. Management expressed confidence in delivering c.£2 billion by the end of 2026, which is ahead of its previous target of c.£1.5 billion.

Lloyds Banking Group plc (NYSE:LYG) also reported an underlying net interest income of £13.6 billion, up 6% compared to 2024 and reflecting a banking net interest margin of 3.06%, up 11 basis points year-on-year, alongside higher average interest-earning banking assets of £462.9 billion.

As part of its financial results, Lloyds Banking Group plc (NYSE:LYG) announced the same day that GenAI delivered around £50 million of value in 2025, and it expects over £100 million in additional value in 2026 through the continual scaling of both agentic AI and GenAI across the Group.

Lloyds Banking Group plc (NYSE:LYG) operates as a financial services company providing banking and financial services. The company’s operations are divided into the following segments: Retail, Commercial Banking, Insurance and Wealth, and Other.

While we acknowledge the potential of LYG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LYG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.