Jefferies International gave a lift to Legal & General PLC (LON:LGEN) today, upping its target price for the blue chip insurance group to 253p from 249p, while retaining a ‘hold’ rating on the stock.
In late afternoon trading, L&G shares on the FTSE 100 index were up 1.3%, or 3.4p at 257.4p.
READ: Legal & General's first-half profits supported by retirement business
In a note to clients, Jefferies analysts said: “The outlook for L&G's core business appears strong, with management expressing confidence on 10% earnings growth and 7% dividend trajectory.”
They added: “We recognize a range of caveats for growth and margins, and question the validity of the multi decade assumption sets that drive L&G's cash earnings essential for dividend growth.”
The analysts continued: “The backdrop for bulk and back book (annuity) deals certainly appears strong. There also appears scope for margin expansion alongside. LGIM (LIG Investment Management) is benefiting from strong inflows, LGC (L&G Capital) from buoyant infrastructure demand.”