Legal & General Group PLC (LSE:LGEN) shares were lower in afternoon trading after bank RBC Capital downgraded stock in the insurer.
Citing potential competition in the bulk-purchase annuity (BPA) and pension risk (PRT) arenas, the Canadian investment bank moved its recommendation to sector perform from outperform and cut its price target by 50p to 245p.
"Following the June 2024 strategy update and the recent emergence of disruptive forces in the UK BPA/PRT market, we make material cuts to operating profit/capital generation....
"While we are within the new company guidance ranges, we are below consensus, and see limited scope for Legal & General to beat targets, in particular in [the current year].
"Given the lack of upcoming catalysts and a valuation that is in line with the UK life peer group, we have less conviction on L&G shares from here."
In afternoon trading the stock was off 2.7p at 227.7p.