Update shared on19 Sep 2025
Fair value Increased 1.13%Aviva's price target has been revised upwards to £6.72, reflecting accelerated earnings growth led by capital-light businesses, improved sector positioning, and higher shareholder return prospects despite some views of the shares as fairly valued at current levels.
Analyst Commentary
- Expectations for accelerated earnings growth, with a significant portion (70%) coming from capital-light business streams, supporting stronger cash generation and improving quality of earnings.
- Improved peer positioning in the UK insurance sector, with Aviva viewed as a preferred pick among domestic names due to its diversified business model and earnings profile.
- Upward earnings estimate revisions following solid operational performance, providing scope for higher price targets.
- Increased shareholder return prospects, including potential for continued capital returns and attractive dividend yield.
- Ongoing positive momentum in valuation, though some analysts remain neutral due to perceptions of the current share price already reflecting fair value.
What's in the News
- Aviva announced an interim dividend of 13.1 pence per share, representing a 10% increase for the first half ended June 30, 2025.
Valuation Changes
Summary of Valuation Changes for Aviva
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £6.64 to £6.72.
- The Consensus Revenue Growth forecasts for Aviva has significantly risen from 20.9% per annum to 26.2% per annum.
- The Net Profit Margin for Aviva has significantly fallen from 4.09% to 3.61%.
Disclaimer
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