Update shared on 10 Nov 2025
Fair value Increased 0.31%Analysts have modestly increased their price target for Aviva to £6.84 per share, citing stronger profit margins and a positive outlook, even though revenue growth has been slower.
Analyst Commentary
Recent analyst updates on Aviva reflect a balanced view of the company’s prospects, highlighting both improved valuations and areas of potential concern for investors.
Bullish Takeaways
- Bullish analysts note that profit margins have been improving. This supports higher price targets despite modest revenue growth.
- Several observers highlight Aviva’s ability to maintain positive momentum in its core business lines. This contributes to a more favorable earnings outlook.
- The upward revision of price targets by some market participants suggests confidence in management’s execution and strategic initiatives.
- Strength in operational efficiency is seen as a key driver that enables Aviva to navigate a competitive market environment.
Bearish Takeaways
- Bears emphasize the slower pace of revenue growth, which could limit further upside in share price performance.
- Concerns remain about Aviva’s capacity to accelerate top-line expansion in the face of industry headwinds.
- Some analysts have downgraded the stock, citing a risk that valuation has become stretched relative to future growth prospects.
- Cautious sentiment persists regarding potential challenges in sustaining recent improvements in margins over the longer term.
What's in the News
- StepStone Group is partnering with Aviva to offer UK trust-based pension schemes access to global private markets through Aviva's new My Future Vision default strategy. The initiative aims to improve diversification and retirement outcomes. (Client Announcements)
- Aviva has selected five specialist managers, including StepStone, to help deliver the My Future Vision solution. This supports the UK Mansion House Compact and directs capital into private markets. (Client Announcements)
- An interim dividend of 13.1 pence per share was announced for the first half ended June 30, 2025. This represents a 10% increase over the prior year. (Dividend Increases)
Valuation Changes
- Fair Value has risen slightly, increasing from £6.82 to £6.84 per share.
- Discount Rate has increased marginally, moving from 6.90% to 7.07%.
- Revenue Growth projections have fallen significantly, decreasing from 26.07% to 23.67%.
- Net Profit Margin has improved, climbing from 3.78% to 4.05%.
- Future P/E ratio has edged down, shifting from 12.12x to 12.09x.
Disclaimer
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