Insurance giant Aviva PLC (LSE:AV.) delivered an earnings beat in its first-half results on Wednesday and City reactions have reflected this bumper result.
Analysts at KBW upgraded their 2025 operating profit forecast by a full 10%, “about half from assuming structurally lower central costs and half from a more optimistic projection of UK life investment income, health results as well as non-life combined ratio”.
KBW’s bullish outlook on Aviva is slightly offset by “uncertainty about the underwriting outlook and investment returns after a generally good (first-half) print”.
Aviva could hit its profit targets a year early, suggested KBW, although the investment bank kept a neutral rating on the stock, noting “tighter financial flexibility” compared to its large-cap insurance peers.
Barclays called Aviva’s first-half earnings print “another great set of results… showcasing the momentum of the group”.
This momentum may already be built into Aviva’s 9.5 times price-to-earnings share price though, given Barclays also gave the stock a hold rating with a 530p target.
Aviva shares were swapping for 497p in early Thursday trades.