Here are the latest share price forecasts for Lloyds, Barclays and HSBC

UK bank stocks have been lighting up the FTSE 100 this year. Lloyds (LSE: LLOY), for example, has seen its share price surge around 50%. Can these shares keep climbing?

Letâs take a look at City analystsâ share price forecasts for Lloyds, Barclays (LSE: BARC), and HSBC (LSE: HSBA) to see what they think.

HSBC

Letâs start with HSBC because this is one of my favourite bank stocks. I like it because it’s focused on the high growth areas of Asia and wealth management.

Currently, the average analyst price target here is 968p. Thatâs about 5% higher than the current share price.

Now, that projected gain isnât so exciting. However, the stock does have a 5.5% dividend yield, so investors could be looking at total returns of more than 10% over the next year if the price target was to be achieved.

Personally, I can see the target being hit and I reckon the shares are worth considering today. Tariffs and losses in China are risks. However, with the stock trading on a price-to-earnings (P/E) ratio of just nine, I like the risk/reward skew ans think it’s worth further research.

Barclays

Moving on to Barclays, this stockâs grown on me recently. Because with its exposure to investment banking and trading, I reckon itâs well placed to benefit from both a pick-up in capital markets activity (which we are seeing right now) and increased volatility in the financial markets (also what weâre seeing).

Zooming in on analysts’ forecasts here, the average price target is 390p. Thatâs about 7% above the current share price of 363p.

The yield on the shares is about 2.4%. So again, investors are potentially looking at solid returns in the medium term (if forecasts turn out to be accurate).

I reckon the price target of 390p is achievable and I believe the stockâs worth considering. Because right now, it looks cheap on a P/E ratio of 8.7 and as I said above, the bank has multiple growth drivers.

That said, an economic slowdown in the US or UK is a risk here. As is a slowdown in investment banking activity.

Lloyds

Finally, turning to Lloyds, the average price target hereâs currently 88.6p. Thatâs about 8% above the current share price.

I wonder if we may be about to see the average price target climb though after the recent Supreme Court ruling on car finance commissions went largely in favour of the banks? Since the ruling, a number of brokers have become more bullish on Lloyds with Morgan Stanley hiking its target price from 95p to 100p.

Personally, Iâm not so bullish on Lloyds at present. For a start, itâs up a lot this year and now trades on a P/E ratio of 11, which I thinkâs fair value.

Secondly, itâs very exposed to the UK economy (which remains shaky). And unlike other major banks, it doesnât have much exposure to investment banking or trading.

Of course, the shares could keep rising from here. After all, theyâre in a strong uptrend right now.

However, I think there are better shares to consider buying.

The post Here are the latest share price forecasts for Lloyds, Barclays and HSBC appeared first on The Motley Fool UK.

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Edward Sheldon has no positions in any shares mentioned. The Motley Fool UK has recommended Barclays Plc, HSBC Holdings, and Lloyds Banking Group Plc. HSBC Holdings is an advertising partner of Motley Fool Money. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.