RBC Royalbank reiterates Legal & General Group PLC with an Outperform rating and lowers the target price to GBX 310 from GBX 330 on the company’s stock.
Based on the Legal & General Group PLC stock forecasts from 6 analysts, the average analyst target price for Legal & General Group PLC is GBX 349.90 over the next 12 months. Legal & General Group PLC’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Legal & General Group PLC is Bearish, which is based on 2 positive signals and 9 negative signals. At the last closing, Legal & General Group PLC’s stock price was GBX 281.20. Legal & General Group PLC’s stock price has changed by +5.40% over the past week, +15.10% over the past month and +1.41% over the last year.
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Superior total returns
The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.
What we don’t like:
Below median dividend returns
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
Poor return on assets
The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.
The company had negative total cash flow in the most recent four quarters.
Low Earnings Growth
This stock has shown below median earnings growth in the previous 5 years compared to its sector.
Low Revenue Growth
This stock has shown below median revenue growth in the previous 5 years compared to its sector.
Low Dividend Growth
This stock has shown below median dividend growth in the previous 5 years compared to its sector.
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