Lloyds Banking Group (NYSE:LYG) is one of the best low-priced stocks to buy right now. On August 5, Goldman Sachs upgraded the stock to a ‘Buy’ from a ‘Neutral’ and increased its price target from GBP 0.87 to GBP 0.99. The upgrade comes amid confidence that headwinds are slowly subsiding and that the market will focus on the core equity story on the motor finance compensation scheme.Goldman Sachs Upgrades Lloyds Banking Group (LYG) to a ‘Buy’ on Improving Fundamentals

Lloyds has already reiterated that any changes related to motor finance issues will not have a material impact on the group. Therefore, it is encouraging investors to focus on the company’s fundamentals. Goldman Sachs has echoed these sentiments, affirming the company’s strengthening revenue diversification and sector-leading earnings per share growth.

In addition, Goldman Sachs is confident that Lloyds will increase its profitability and attractive capital returns through dividend payments and share buybacks. The investment bank expects the company’s core revenue to grow at a compound annual growth rate of 8% through 2027. The growth rate should outpace the sector average of 3%.

Lloyds Banking Group (NYSE:LYG) is a UK-based financial services group that provides a wide range of banking and financial services. It offers current accounts, credit cards, savings, home insurance, mortgages, loans, car finance, and travel services. It focuses primarily on retail and commercial customers.

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

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