KEITH BOWMAN HARGREAVES LANSDOWN
The group’s industry leading adoption of a cash generative business model continues to reap rewards for investors. Prior moves to focus on products requiring lower capital reserves have clearly played their part, underwriting today’s bigger than expected increase in the dividend payment.
BARRIE CORNES PANMURE GORDON
Although the shares performed well in 2012, we maintain our view that the shares are still undervalued. The outlook statement is positive highlighting L&G’s exceptional position to capture growth from an ageing population, a reduction in state spending and the retrenchment of the banks.
KEVIN RYAN INVESTEC
We view [the decision to raise the dividend] as a bold move given that cash generation was broadly flat and the effects of the retail distribution review (RDR) remain unknown. At current levels, the stock looks fully valued to us and we retain our sum of the parts-based target price.