Jefferies has maintained its 'buy' rating on M&G PLC (LSE:MNG), the asset management and insurance group, with a price target of 215p, after the company's first-half results.
The broker said adjusted operating profit increased 15% year on year to £435 million, a post-listing record, and that it expects the market to react positively.
M&G reported a 15% rise in adjusted operating profit to £435 million for the first half, while net client inflows reached £2.4 billion.
Jefferies highlighted asset management net inflows of £2.2 billion, split evenly between institutional and wholesale clients and ahead of consensus, alongside a £200 million beat on life division flows.
The broker noted external assets now make up 53% of total asset management AUMA, with the cost-to-income ratio improving to 73% from 75%, moving closer to M&G's 70% target for 2027.
Jefferies said 2025-27 operating capital generation remained on track to hit a cumulative £2.7 billion target, with £1.32 billion achieved in the first 18 months.
Panmure Liberum, which does not formally cover the stock, described the results as showing solid flows and a strong balance sheet, positioning M&G well to meet its targets.
The broker pointed to net flows of £2.4 billion, up 14% year on year and ahead of expectations, and a new partnership with Dai-ichi Life that added £700 million of incremental flows.
Panmure Liberum also highlighted £1.7 billion of bulk purchase annuity volumes by the end of August, in line with the figure cited by Jefferies.
It also pointed to a Solvency II capital coverage ratio of 247%, up from 242% at the end of 2025 and 8 percentage points ahead of expectations.
Both brokers noted the shares trade on around 11 times two-year forward earnings, with Panmure Liberum citing a dividend yield of approximately 6%.