Update shared on18 Sep 2025
Fair value Decreased 1.79%Analysts have lowered their price target for Legal & General Group from £2.67 to £2.62, citing limited earnings upside, valuation concerns after recent share price gains, and ongoing margin and demand pressures in core markets.
Analyst Commentary
- Valuation concerns as recent share price gains have already priced in expected capital returns.
- Limited potential for upside to consensus earnings estimates, leading to reduced optimism on the stock’s forward trajectory.
- Bearish analysts cite ongoing challenges to margins and volumes due to increasing competitive pressures and softening demand in Legal & General’s core markets.
- Some analysts are modestly positive, reflecting incremental adjustments to price targets based on operational stability but maintaining neutral stances rather than outright bullishness.
- Bearish analysts have further lowered price targets and ratings in response to perceived sector headwinds and risks to earnings resilience.
What's in the News
- Completed £500 million share buyback, repurchasing 203.4 million shares (3.5% of share capital) under the March 2025 program.
- Announced 6.12 pence interim dividend per share.
- Provided FY25 guidance of 6%–9% core operating EPS growth with strong capital generation and positive momentum across all businesses.
- Entered long-term strategic partnership with Blackstone to leverage its private credit platform for enhanced annuities returns and asset management expansion.
Valuation Changes
Summary of Valuation Changes for Legal & General Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £2.67 to £2.62.
- The Future P/E for Legal & General Group has risen slightly from 12.47x to 12.72x.
- The Net Profit Margin for Legal & General Group remained effectively unchanged, moving only marginally from 13.48% to 13.34%.
Disclaimer
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