Aviva shares could hit 350p, says Deutsche Bank ahead of H1 earnings
Shares in Aviva have struggled amid the Covid-19 crisis, but analysts at Deutsche Bank think the stock will rebound after the company sold its Friends Provident International unit to bolster its balance sheet.
![Aviva](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG_aviva_32343423423.jpg/jcr:content/renditions/original-size.webp)
Aviva has seen its shares take a major hit as a result of the economic fallout from the coronavirus pandemic, with the stock down 34% year-to-date after hitting a low of 211p in March.
But analysts at Deutsche Bank remain optimistic about the insurer’s share price trajectory ahead of its half-year results on Thursday 6 August, with the German lender reiterating its ‘hold’ rating and issuing a target price of 350p in July - implying a potential upside for the stock of 26%.
Aviva is trading at 278p per share at the time of publication.
New CEO to end 'business as usual' at Aviva
Investors are eager for an update on Aviva’s performance on Thursday when the company reveals its first set of earnings under new Amanda Blanc.
Blanc took the helm in last month and faces an uphill battle at the British insurer, with the company shedding almost 50% off the value of its share price over the last five years due to poor growth in Europe.
The path that Aviva will take to strengthen its business is unclear at this stage, with some investors hoping for M&A activity in the form of a major merger or acquisition, while others would like to see the group separate its life and general insurances units to help streamline operations.
Whatever direction Blanc and her management team opt to take, the new CEO has promised to bring an end to ‘business as usual’ at Aviva in this year.
Aviva sells Friends Provident International unit in revised deal
Last month, Aviva announced it had finalised the sale of its Friends Provident International to International Financial Group (IFGL) in a revised deal valued at £259 million.
The revision of the deal terms sees Aviva sell a 76% stake in Friends Provident International rather the entire business for £340 million which it originally had considered.m
‘Aviva and IFGL have entered into a shareholders' agreement under which Aviva has certain ongoing commitments and customary rights given the minority shareholding,’ the company said in a statement.
‘FPIL will continue to serve customers, partners and intermediaries as usual and there is no change to customers' policies as a result of today's announcement,’ Aviva added.
The impact the sale has on Aviva’s capital ratios will be minor, but proceeds from the disposal will help bolster the company’s balance sheet at a time when regulators are advising businesses to raise capital to offset the economic impact of Covid-19.
How to trade stocks with IG
Looking to trade the Aviva and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs and spread bets in a few easy steps:
- Create an IG trading account or log in to your existing account
- Enter ‘Aviva’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Shares-global-component-banner.jpg/jcr:content/renditions/original-size.webp)
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.