Standard Life's Strong Growth Gives Premium Valuation

Dow Jones
Sep 23

0705 GMT - Standard Life has the highest total return yield among U.K. life insurers, but is now at a premium to better diversified peers in Europe, RBC Capital Markets' Ben Cohen and Sarah Chong write. The savings and retirement firm's recent pension risk transfer partnership helps increase RBC's adjusted operating profit guidance by 2% on average through 2029, the analysts say. RBC says it is now 7% ahead of the Visible Alpha consensus on average, which doesn't fully reflect the partnership and the purchase of Aegon UK. Standard Life's valuation is similar to European groups with a more diversified profile, the analysts add. RBC maintains its sector-perform recommendation for the stock and increases the price target to 970 pence from 885 pence. Standard Life shares are up 0.8% at 941 pence.

 

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