Phoenix Group Holdings PLC (LSE:PHNX) will report interim results on Monday, 8 September, with analysts at Panmure Liberum upbeat on the outlook.
The broker highlights Phoenix’s sector-leading free cash flow, which it says is both expanding and sustainable, underpinned by strong product fundamentals and growing operational leverage.
Credibility has been built through a consistent record of meeting or beating capital generation targets, while recent enhancements in disclosure should bolster the equity story further, with the broker expecting more to come .
Panmure Liberum’s analysis of so-called management actions supports the view that Phoenix’s repeatable capital generation is sustainable rather than overstated.
Valuation also looks appealing, with the stock trading on undemanding multiples of free cash flow and dividends, the broker argues. With free cash flow now running comfortably ahead of dividend payouts, Phoenix has increasing flexibility to accelerate capital returns or reinvest for growth.
Panmure Liberum has lifted its target price and reiterated a Buy rating.