Aviva: Jefferies upgrades stock
(CercleFinance.com) - Jefferies has upgraded Aviva shares to "buy", increasing its target price for them to 480 pence, as a more favorable outlook for general insurance leads it to estimate 2025 FCF that exceeds the consensus by 10%.
"We forecast Aviva to deliver a best-in-class capital return yield (23F: 12%), underpinned by excess capital and the strongest free cash flow amongst peers," the broker summarises.
"Earnings should start to shift towards capital-light business, which is well-timed given improving market conditions, and should warrant a premium valuation versus peers," it continues.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"We forecast Aviva to deliver a best-in-class capital return yield (23F: 12%), underpinned by excess capital and the strongest free cash flow amongst peers," the broker summarises.
"Earnings should start to shift towards capital-light business, which is well-timed given improving market conditions, and should warrant a premium valuation versus peers," it continues.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.