Jefferies has adjusted its price target for shares of Legal & General Group PLC (LON:LGEN: LN) (OTC: LGGNF), reducing it to GBP2.35 from the previous GBP2.55 while retaining a Hold rating on the stock.
The revision follows the company's first-half results and incorporates the latest corporate management guidance.
Legal & General's half-year performance and recent guidance from the company's management have prompted Jefferies to reassess its estimates.
The analyst anticipates that the cumulative Operational Surplus Generation (OSG) will be at the higher end of the forecasted range for the period 2025 to 2027.
However, even with this positive projection, the total capital return cover on a Solvency II basis for Legal & General appears to be tighter compared to its industry peers.
The firm's Asset Management division is identified as the expected primary driver of long-term growth.
Despite this outlook, the analyst does not foresee a significant change in the earnings mix for Legal & General in the near future.
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