Legal & General (LGEN – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Hadley Cohen from Morgan Stanley maintained a Hold rating on the stock and has a p237.00 price target.
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Hadley Cohen’s rating is based on several strategic developments by Legal & General. The company has recently announced its decision to sell its US protection business to Meiji Yasuda, while retaining a significant stake in its US Pension Risk Transfer business, for a substantial equity value. This move is expected to enhance the company’s solvency ratio, indicating improved financial stability.
Moreover, the transaction involves a strategic partnership with Meiji Yasuda, which plans to acquire a stake in Legal & General. This partnership is anticipated to foster growth, particularly in the US market. Additionally, a planned share buyback signals a commitment to returning value to shareholders, although much of the proceeds will be reinvested to support ongoing business growth. These factors suggest potential for long-term growth but also indicate a transitional phase, justifying a Hold rating as the market adapts to these changes.