Deutsche Bank remains bullish on Aviva (LON:AV) ahead of the insurer’s results next month which could yield news on share buybacks, Citywire has reported. The FTSE 100 group is scheduled to update investors on its full-year performance on March 8.
Aviva’s share price tumbled in the previous session, with financials and asset managers leading yesterday’s selloff. The shares closed 3.30 percent lower at 489.10p, underperforming the benchmark FTSE 100 index which ended the session 2.64 percent in the red at 7,141.40 points. The group’s shares have lost about 0.2 percent of their value over the past year, as compared with a 0.4-percent dip in the Footsie.
Deutsche Bank upbeat on Aviva
Deutsche Bank reiterated its ‘buy’ rating on Aviva yesterday, with a price target of 600p on the shares.
“A potential extra positive catalyst with the results is the possibility that management will announce the start of a buyback,” the broker’s analyst Oliver Steel commented, as quoted by Citywire. “Excess cash should already be sufficient by end 2017 for this process to begin, given that the group arguably needs no more than £1.5 billion at the centre in normal circumstances.”
The comments come after at the end of November, Aviva pledged to spend $3 billion of excess cash in the next two years, with £2 billion to be deployed in 2018.
Other analysts on blue-chip group
The 18 analysts offering 12-month price targets for Aviva for the Financial Times have a median target of 573.00p on the shares, with a high estimate of 648.00p and a low estimate of 456.00p. As of February 3, the consensus forecast amongst 20 polled investment analysts covering the blue-chip insurer has it that the company will outperform the market.