Aviva share price steady ahead of insurer’s Capital Markets Day

Group faces questions over growth prospects

Aviva share price steady ahead of insurer’s Capital Markets Day

Shares in Aviva (LON:AV) have climbed into positive territory in today’s session, outperforming the broader market, ahead of the group’s Capital Markets Day tomorrow. The Financial Times reports that the insurer is likely to use the investor day in Warsaw to show where it thinks it can find growth going forward.

As of 14:28 GMT, Aviva’s share price had added 0.30 percent to 508.50p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.46 percent lower at 7,426.03 points. The group’s shares have added more than 12 percent to their value over the past year, and are up by some four percent in the year-to-date.

Growth concerns

Aviva is scheduled to hold its Capital Markets Day tomorrow and the FT reports that analysts and investors are hoping to hear about is where the group’s growth will come from.

“It has become a bit of a ‘show me’ stock,” Alastair Gunn a fund manager at Jupiter, told the newspaper, adding that until now the insurer’s growth story had not been as compelling as it had in FTSE 100 peers Legal & General (LON:LGEN) and Prudential (LON:PRU).

Aviva chief executive “Mark Wilson is always bullish, but being bullish is not enough to drive the share price forwards,” Gunn added. The newspaper also quoted Barrie Cornes, analyst at Panmure, as commenting that Aviva “really has to deliver earnings growth to prove the doubters wrong”.

Wilson meanwhile is also expected to announce tomorrow that the company is set to spend more than £1 billion buying back its own shares.

Ratings update

Analysts at JPMorgan Chase & Co reiterated their ‘overweight’ rating on Aviva this week, valuing the shares at 617p. According to MarketBeat, the blue-chip insurer currently has a consensus ‘buy’ rating and an average price target of 558.07p. 

As of 14:58 GMT, Wednesday, 29 November, Aviva plc share price is 508.75p.

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