Jefferies have commented this morning that future momentum at Aviva has justified the raising of their target share price on the insurer to £4.98.
"Yesterday's investor day reassured over the capital position and provided clear evidence that management is listening. Disposals would be welcome and are now more likely in our view. We reiterate our Buy recommendation and raise our price target to £4.98," says James Shuck at Jefferies.
Shuck goes on to say that Aviva knows where it is going.
"It may take time to get there but strong and improving earnings momentum lights the way. This company is likely to look very different in 1-2 years, with a lower risk profile and a much sharper focus.
Meanwhile RSA Insurance Group (LON:RSA) had its 'buy' rating maintained at Jefferies after yesterday's trading update.
Management also gave slightly improved guidance for 2011, with estimates likely to move upwards. We remain some 15% ahead of consensus in that year.
"RSA can continue to post above average growth and resilient 20% returns for a modest 1.5x NAV and we reiterate our Buy recommendation," says Shuck.
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