Lloyds (LSE:LLOY) shares continue to rise and rise. And rise some more.
Strong earnings growth and improving margins, thanks in large part to higher interest rates, have propelled the FTSE 100 bank skywards. Latest financials showed Lloyds’ underlying profit up 9% in the first half of 2026, comfortably beating forecasts.
Over the last 12 months, Lloyds’ share price has surged 39% to 116.2p. That’s more than double what the Footsie has achieved in that time. And it means someone who bought £9,999 worth of shares a year ago would have turned that into £13,899.
With paid dividends included, the total return would have been £14,380, or an exceptional 43.8% in percentage terms.
The question is, can Lloyds shares continue their spectacular bull run?
Bright price forecasts
Broker forecasts offer a useful jumping-off point when assessing any company’s share price prospects. They provide a snapshot of how experts — in this case, in the field of banking equities — view a stock’s investment case.
With Lloyds, there are currently 19 analysts with ratings on its shares, providing a healthy range of viewpoints. As is commonplace, there are some huge differences of opinion. The most optimistic broker believes Lloyds will rise 16.2% over the next year to 135p. At the opposite extreme, another thinks the bank will reverse all the way back to 53p, a 54.4% fall.
Yet, forecasts are leaning towards further gains for Lloyds’ share price, albeit at far more modest pace than we’ve seen recently. The average 12-price target among those City forecasters is 120.4p, a 3.6% increase from today.
If this is accurate, a £9,999 investment in the FTSE 100 bank today will turn into £10,360 a year from now. And with predicted dividends included, the return improves to £10,737, or 7.4% in percentage terms.
How about the longer-term picture?
That’s a reasonably positive outlook, albeit one with expectations of far slower price growth than we’ve become used to. But any long-term investor also needs to consider how Lloyds shares could perform beyond the next 12 months.
Once again, signs from the City are encouraging. Of the 19 analysts who rate the bank,
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12 rate it a Strong Buy or Buy.
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6 rate Lloyds shares as a Hold.
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1 rates the bank as a Sell.
Of course brokers’ price forecasts aren’t set in stone. And over the longer term, their optimism may also prove misplaced. So what should investors do?
Here’s where I stand on Lloyds shares
There’s no doubting that Lloyds has a sensational record of execution. It knows how to effectively leverage its market-leading brand power, and is successfully expanding its product offering to exploit this. Behind the scenes, extensive cost-cutting and investments in digital are also paying off handsomely.
