Goldman Sachs reinstates Aviva stock with Buy rating, cites attractive valuation

Published 05/09/2025, 11:28
Goldman Sachs reinstates Aviva stock with Buy rating, cites attractive valuation

Investing.com - Goldman Sachs has reinstated coverage on Aviva PLC (LON:AV) with a Buy rating and a price target of GBP7.36.

The investment bank notes that while Aviva is trading at the high end of its 20-year PE range, its valuation appears attractive compared to multi-line insurance peers, with Aviva’s approximately 8.5x 2027 estimated PE being the lowest in its peer group.

Goldman Sachs highlights Aviva’s approximately 8.5% 2026 estimated total capital return yield as the highest among multi-line insurers, making it stand out in the sector.

The firm points to several potential catalysts for Aviva, including the company’s planned introduction of new financial targets in November, where Goldman Sachs sees scope for a 2026-28 EPS CAGR target of 8-10% and cumulative cash remittances of approximately £7 billion.

Goldman Sachs also identifies upside risks to Aviva’s DLG expense synergy target and potential for improvement in group solvency through further action on the group’s structure, which could provide 2-4% earnings upside.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.