After much anticipation, Legal & General Group PLC's (LSE:LGEN) Capital Markets Day was a bit of a damp squib and ended up tempering expectations, according to Deutsche Bank.
“However, despite 6% cuts to our EPS forecasts and an 8% reduction in our target price, we retain our ‘buy’", said the German bank.
New earnings targets are more realistic, it adds, and likely conservative looking out to the future, while the continued focus (particularly in annuities and protection) should provide a strong underpin to long-term capital generation.
Finally, there is value in an attractive 11% 2025e distribution yield, which assumes another £200m buyback in that year on top of the £200m announced for 2024.
Deutsche Bank has reduced its target to 275p from 300p.