By Benjamin Chiou
Date: Friday 22 Dec 2023
LONDON (ShareCast) - (Sharecast News) - Berenberg has hiked its target price for life insurance group M&G from 208p to 225p after updating its estimates for the IFRS 17 accounting adjustments.
"M&G is one of the few companies in the insurance sector that has benefited from the transition to IFRS 17 as the standard allows M&G to recognise a greater portion of future shareholder transfers from its with-profits fund within shareholders equity, relative to the old standard," said analyst Thomas Bateman.
"This process is essentially bringing forward profit recognition on M&G's with-profits business, whereas IFRS 17 has had the opposite impact on the annuity portfolios of its peer group, with profit recognition being deferred."
However, the broker has kept a 'hold' rating on the stock, which trades at 8.5 times 2025 earnings for a 2024 estimated dividend yield of 9.3%.
Berenberg said it would turn more positive on M&G if retail asset management net fund flows show consistent positive trends, "which would likely lead to more optimistic commentary on the dividend from management".
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Currency | UK Pounds |
Share Price | 200.40p |
Change Today | 2.50p |
% Change | 1.26 % |
52 Week High | 238.80 |
52 Week Low | 183.05 |
Volume | 22,418,407 |
Shares Issued | 2,380.18m |
Market Cap | £4,769.89m |
RiskGrade | 186 |
Value |
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Price Trend |
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Income |
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Growth |
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Latest | Previous | |
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2nd Interim | Interim | |
Ex-Div | 28-Mar-24 | 28-Sep-23 |
Paid | 09-May-24 | 03-Nov-23 |
Amount | 13.20p | 6.50p |
Time | Volume / Share Price |
16:47 | 27,223 @ 199.92p |
16:35 | 2,101,137 @ 200.40p |
16:35 | 333 @ 200.40p |
16:35 | 2,612 @ 200.40p |
16:35 | 6,208 @ 200.40p |
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