Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a703895
The Expert View: L&G, Associated British Foods, Redrow
by Chris Marshall on Sep 19, 2013 at 05:01
Dividend growth to drive L&G shares higher
The potential for Legal & General’s (LGEN.L) full-year dividend to ‘surprise on the upside’ has prompted analysts at Canaccord Genuity to raise their target price for the insurer.
The latest in a steady trickle of broker upgrades since L&G announced particularly strong first half results in early August, Canaccord Genuity’s Ben Cohen and Ming Zhu raised their target price to 215p.
They point to the 22% rise in L&G’s interim dividend, greater cash generation than had been expected and ‘lower new business strain’ in the group’s half year results.
Cohen and Zhu now expect a 5% dividend yield next year.
Despite raising their target price the pair have retained their ‘hold’ rating for the shares, which have rallied 38% so far this year.
Shares in L&G dropped 0.6% yesterday, to 199p.
News sponsored by:
Today's top headlines
More about this:
Look up the shares
- Redrow PLC (RDW.L)
- Bhp Billiton PLC (BLT.L)
- Anglo American PLC (AAL.L)
- Glencore Xstrata PLC (GLEN.L)
- Rio Tinto PLC (RIO.L)
- Smiths Group PLC (SMIN.L)
- Legal & General Group PLC (LGEN.L)
- Associated British Foods PLC (ABF.L)
On the road
by Alex Steger on Dec 11, 2013 at 10:19