Legal & General: share price down, UBS lowers guidance

(CercleFinance.com) - The share price is down -2% after UBS lowered its target price.


The Legal & General group yesterday announced a £200 million share buyback for 2024 as part of its plan to increase returns to shareholders.

Following this announcement, UBS confirms its neutral recommendation on the stock and lowers its target price to 240p (from 258p), which represents upside potential of only 4%.

UBS highlights the fall in EPS, with no increase in shareholders' total return on capital. The realization of private assets is essential in the coming transition period," says the research firm.

The Group plans to create a single asset management division and revise its capital allocation policy. Improved returns are targeted, with a compound annual growth rate in core earnings of 6-9%.

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