In a report released today, Hadley Cohen from Morgan Stanley maintained a Hold rating on Legal & General (LGEN – Research Report), with a price target of p237.00.
Hadley Cohen has given his Hold rating due to a combination of factors including Legal & General’s recent financial performance, which was largely in line with market expectations. The company’s core operating profit, dividend per share, and solvency ratio met consensus forecasts, indicating stable performance. However, investment variances were higher than anticipated, primarily due to increased interest rates affecting the annuity portfolio, which could be a concern.
On the positive side, the announcement of a £500 million share buyback was at the upper end of market expectations, suggesting a commitment to returning capital to shareholders. Additionally, the company has shown positive momentum in its UK PRT business and has a clear plan for asset disposals in its Corporate Investments unit. Despite these positives, the overall results were seen as uneventful, leading to a Hold rating as the shares are expected to have a muted reaction.
In another report released on February 25, RBC Capital also maintained a Hold rating on the stock with a p245.00 price target.