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Lloyds‘ (LSE:LLOY) shares have been firing on all cylinders over the past 12 months, up 84%. Not only did this strength push the bank’s stock to its highest level since 2008, but it also allowed Lloyds to surpass the long-awaited 100p mark. However, this may just be the tip of the iceberg.
With Lloyds shares already up more than 15% since the start of 2026, could the bank break 150p later this year? Here’s what the experts say.
A case of bull
Lloyds’ continued momentum is driven by a variety of factors. High interest rate coupled with smart hedging has enabled the bank to grow exponentially. And after that, the group is now expected to deliver a 9.6% increase in interest income through 2026, reaching £14.9bn.
Combining this higher profitability with improved efficiency has also translated into a gradual increase in the company’s Return on Tangible Equity (RoTE).
This very important efficiency metric reached 15.7% in the last quarter of 2025. And if management’s guidance proves accurate, ROTE will grow even more by 2026, surpassing 16%, putting it ahead of many of its competitors.
What the experts say
Needless to say, the incoming increase in profits bodes well for Lloyds’ share price. And when combined with incoming shareholder distributions through both dividends and purchases, the analyst team Deutsche Bank they believe the bank’s stock will rise to 125p in the next 12 months.
But what about 150p? As it stands, no leading financial institution has set a record price for Lloyds shares in 2026. However, looking beyond the next year, reaching this limit is not expected if the bank can continue to deliver strong results.
Of course, none of this is guaranteed. Forecasts are not set in stone, and Deutsche experts have highlighted some key risks. So what do investors need to look for?
What you can watch
Lloyds is heavily exposed to the UK economy, which is not exactly in good shape at the moment. Unemployment is steadily rising, taxes are rising, and steady growth continues to seem impossible.
That doesn’t sit well with lending institutions like Lloyds, and increases the risk of credit defaults as both individuals and businesses struggle to keep up with payments.
At the same time, as the Bank of England slowly cuts interest rates, Lloyds’ lending ratings may also come under pressure.
The team’s interest hedges have seemed to work so far, but sadly, these don’t last forever. And while the bank could aim to pay lower margins with higher lending volumes, that could prove difficult if the UK economy’s weakness continues.
What is the decision?
For investors looking for strong growth, Lloyds shares are probably not a good fit. But for portfolios focused on fixed income, the bank’s 3% return makes a potentially strong case that deserves further investigation. And it’s not the only promising opportunity in the financial sector that I saw this week.
