Two key investment banks raised their price targets for stock in Aviva PLC (LSE:AV.) – though neither seems particularly bullish on the outlook for the insurer’s shares.
Citi moved its valuation 5% to 441p following last week’s interim results, while raising its operating profit forecasts by 5%, 7% and 9% respectively for this year, next year and the year after.
Credit Suisse, meanwhile, maintained its ‘neutral’ recommendation while lifting its price target to 480p from 455p a share.
These were the latest in a series of forecast and valuation upgrades since the interim results last week (Aug 10), which were better than expected.
Investors were also told that the life and pensions giant would return cash via a share buyback programme following a strong financial performance in the six months to June 30.
Citi expects Aviva to announce a £300mln ‘recurring buyback programme’ along with full-year results.
The City was surprised that the cash taps had been turned back so soon after the company returned £4.75bn to investors.
Of the 19 analysts logged as following Aviva, ten are positive on the stock, eight are neutral, and only one is negative.
The consensus price target for the stock, which has risen 14% in the last five trading days, is 481p, which is around a 3% premium to the current share price of 466p.