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.

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This article is originally published at Insider Monkey.