Legal & General’s Promising Financial Trajectory and Asset Management Growth Support Buy Rating

Legal & General (LGEN – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Andrew Baker from Goldman Sachs maintained a Buy rating on the stock and has a p249.00 price target.

Andrew Baker has given his Buy rating due to a combination of factors that highlight Legal & General’s promising financial trajectory. The company has set ambitious targets for its Asset Management division, aiming for significant operating profit and net new revenue by 2028. This includes a substantial increase in Private Markets assets under management and a favorable cost-income ratio.
Furthermore, Legal & General anticipates strong revenue contributions from its Workplace DC and annuity businesses, which are expected to counterbalance the decline in the UK DB market. The company also projects an improvement in fee margins, which is expected to enhance profitability. Despite the lack of immediate share price movement, Baker believes that the Asset Management division is well-positioned to meet or exceed its long-term profit targets, supporting the Buy recommendation.

In another report released on June 9, Barclays also maintained a Buy rating on the stock with a £3.20 price target.

Based on the recent corporate insider activity of 102 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LGEN in relation to earlier this year.