aviva stock gains momentum with strategic focus on efficiencies and growth—HSBC

Published 15/11/2024, 08:12
aviva stock gains momentum with strategic focus on efficiencies and growth—HSBC

On Friday, HSBC upgraded Aviva (LON:AV) Plc (AV/:LN) (OTC: AIVAF) stock from Hold to Buy, setting a new price target of GBP5.55, up from the previous GBP5.20. The revision came after a review of the company's recent performance and future prospects.

Aviva's shares have seen a decline since reaching mid-year highs in 2024, but HSBC views the company's strategy and business model as effective and beneficial for shareholders. The firm's third-quarter results, released on Thursday, November 14, 2024, were cited as evidence of Aviva's strong position following its restructuring.

The insurance group has made significant strides in its core markets, including the UK, Canada, and Ireland. Aviva's focus is now on expanding capital-light businesses, enhancing operational efficiencies, and improving customer relationships and experiences.

HSBC analysts have adjusted their estimates for Aviva, expressing confidence in the company's ability to meet its 2026 operating profit and Solvency II own funds generation (OFG) targets. The firm even suggests that Aviva has the potential to exceed these goals, indicating a positive outlook for the insurer's financial health.

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