Legal & General shares could hit 290p, says DB ahead of H1 earnings
Shares in UK-based investment management and pensions group have been hit hard by the coronavirus pandemic, but analysts at Deutsche Bank believe the stock can rebound towards pre-crisis levels before the end of the year.
Shares in Legal & General (L&G) have struggled amid the coronavirus pandemic, but analysts at Deutsche Bank believe the stock can rebound towards pre-crisis levels before the end of the year.
Investors will be paying close attention to L&G's upcoming half-year (H1) results on Wednesday 5 August for an update on its performance amid challenging market conditions.
Analysts at the German lender remain confident in the company’s share price trajectory, despite the myriad of challenges facing the business, with it reiterating its ‘buy’ rating for the stock and issuing a price target of 290p per share.
L&G is trading marginally higher on Tuesday to 221p per share at the time of publication, with Deutsche Bank implying a potential upside for the stock of 31%.
L&G retains strong dividend despite Covid-19
The UK-based investment management and pensions group has remained a strong dividend play for investors at a time of great uncertainty.
Unlike many other companies on the FTSE 100, L&G opted not to suspend its dividend in an effort shore up its balance sheet amid rising costs and increased pressure from regulators.
In fact, the company’s current total dividend pay-out for 2020 stands at 17.6p per share which represents an impressive yield of 8.4%.
L&G has also grown to become one of Europe’s largest investment management firms, with asset under management worth more than £1 trillion.
Despite regulators tightening capital ratios, the company was able to retain its dividend pay-out to shareholders because of its strong Solvency II capital ratio of 184%, along with boasting earnings per share of 30.9p.
Legal & General signs annuity deal with PensionBee
Legal & General Retail Retirement has agreed a new partnership within its Retirement Income business to provide annuities to PensionBee customers.
‘For many retirees, we believe annuities continue to play an important role, especially for those seeking financial security,’ Emma Byron, managing director at L&G General Retail Retirement. ‘We are therefore really pleased to partner with PensionBee to offer customers the option of a guaranteed income from an annuity.’
This new partnership has partly been driven by forthcoming Investment Pathways regulations, which include a pathway toward a guaranteed income product, such as a lifetime annuity, L&G said in a statement.
‘While Covid-19 has delayed the implementation of the FCA's rules until February 2021, we believe savers need to be better informed of their choices today and recognise that for some, an annuity can offer peace of mind, particularly in periods of market turbulence.’ PensionBee CEO Romi Savova said.
How to trade stocks with IG
Looking to trade the Legal & General and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:
- Create an IG trading account or log in to your existing account
- Enter ‘Legal & General Group PLC’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
