By Alexander Bueso
Date: Wednesday 02 Feb 2022
LONDON (ShareCast) - (Sharecast News) - Analysts at Deutsche Bank reiterated their "high conviction" behind their 'buy' recommendation on Aviva's shares on the basis of its "highly attractive" free cash flow generation and their expectations for its future plans for deploying that cash.
"Aviva's upcoming full-year results offer the chance to refresh a story that really hasn't changed much for several months," analyst Oliver Steel said in a research note sent to clients.
Steel's forecasts called for Aviva to confirm expectations for up-front capital return at the higher end of the range of £5bn.
But what would matter most is Aviva's attitude towards future cash deployment, he added.
On his estimates, Aviva shares were trading on an expected 2023 free cash flow yield of 11.4%, against 7.1% across the wider sector.
The analyst also bumped up his target price by 6% to 530.0p, adding that it was "arguably conservative".