Wednesday March 19, 10:55 AM
Broker snap: Lloyds TSB preferred to HBOS
LONDON (ShareCast) - SG Securities has started coverage of mortgage lender HBOS (LSE: HBOS.L - news) at a time of high interest in
the company, which felt obliged Wednesday morning to deny market rumours that its was strapped for cash.SG Securities rates HBOS a "hold" and has a price target of 485p for the stock. The broker said HBOS is a steady option, but prefers the even more conservative Lloyds TSB in the banking sector. SG has instigated coverage of Lloyds TSB with a "buy" recommendation and a price target of 490p.
The rumour that one large bank had asked the Bank of England for emergency funds sent shares across the bank sector tumbling Wednesday morning. HBOS shares shed 13% at one point before recovering. Bradford & Bingley (LSE: BB.L - news) and Alliance & Leicester shares were also sharply lower.
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