1152 GMT - The run of Legal & General's shares has been disappointing given its big buybacks, HSBC says in a research note. The U.K. financial services group intends to return around 30% of its market cap to shareholders over the next two years but its ordinary dividend per share is constrained, analysts say. Its current 500 million pound buyback and its extra 1 billion pound buyback from the sale of its U.S. protection business mean the stock offers an attractive yield for the next two years, they say. However, neither underlying core operating profit nor net surplus generation cover its ordinary dividend cost in the short term, they note. "We see limited upside left for L&G and better opportunities elsewhere," they add. HSBC cuts its rating on the stock to hold from buy. Shares have risen 4.3% year to date. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

May 19, 2025 07:52 ET (11:52 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.