Legal & General Group (LGEN)

Sector:

Insurance

Index:

FTSE 100

260.00p
   
  • Change Today:
    -9.10p
  • 52 Week High: 318.40
  • 52 Week Low: 216.70
  • Currency: UK Pounds
  • Shares Issued: 5,965m
  • Volume: 36,711,949
  • Market Cap: £15,510m
  • RiskGrade: 165

JPMorgan ups Legal & General to 'neutral' after de-rating

By Michele Maatouk

Date: Monday 18 Mar 2019

LONDON (ShareCast) - (Sharecast News) - JPMorgan Cazenove upgraded its stance on Legal & Geneal to 'neutral' from 'underweight' on Monday, lifting the price target to 285p from 239p on management delivery and following a de-rating of the shares.
The bank said management continues to deliver on its growth plans, supported by a growing annuities business and consistent positive net inflows in asset management. In addition, even though the stock has done well year-to-date, it has de-rated from 15x one-year forward price-to-earnings in 2015 to 11x, partly driven by increasing asset risk from the growing bulk annuities business and partly by Brexit-related uncertainty.

"In our view, as long as credit markets and/or the UK economy remain benign, the growth in earnings and cash flows could continue as LGEN remains well placed to capture the growth from bulk annuities and asset management," it said.

JPM also pointed out that the Solvency II ratio has improved from 163% in the first half of 2016 to 190% currently, in line with the bank's strategy view to add to UK domestics and providing an additional cushion to absorb macro shocks.

JPMorgan said it wasn't moving to an 'overweight' rating as it remains cautious around tail risk from the bulk annuities business while free cash flows remain marginally low at around 8.5% pre capital strain and 6.5% net, versus a sector average of 9%.

At 1300 GMT, the shares were up 0.8% to 284.20p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Legal and General Market Data

Currency UK Pounds
Share Price 260.00p
Change Today -9.10p
% Change -3.38 %
52 Week High 318.40
52 Week Low 216.70
Volume 36,711,949
Shares Issued 5,965m
Market Cap £15,510m
RiskGrade 165

Legal and General Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
31.55% above the market average31.55% above the market average31.55% above the market average31.55% above the market average31.55% above the market average
55.56% above the sector average55.56% above the sector average55.56% above the sector average55.56% above the sector average55.56% above the sector average
Income
84.43% above the market average84.43% above the market average84.43% above the market average84.43% above the market average84.43% above the market average
25% below the sector average25% below the sector average25% below the sector average25% below the sector average25% below the sector average
Growth
62.36% above the market average62.36% above the market average62.36% above the market average62.36% above the market average62.36% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 6
Buy 0
Neutral 6
Sell 1
Strong Sell 3
Total 16
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Legal and General Dividends

  Latest Previous
  Interim Final
Ex-Div 15-Aug-19 25-Apr-19
Paid 26-Sep-19 06-Jun-19
Amount 4.93p 11.82p

Trades for 28-Feb-2020

Time Volume / Share Price
17:11 687,625 @ 259.75p
16:35 9,507,046 @ 260.00p
16:29 4,569 @ 259.20p
16:29 4,721 @ 259.20p
16:29 18,849 @ 259.20p

Legal and General Key Personnel

Chair John Kingman
CFO Jeff Davies
CEO Michelle Scrimgeour

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