Legal & General Share News (LGEN)

Nomura has today raised its target price on Legal&General to 182p from 180p, adding that they continue to be buyers. They begin their research note by calling attention to the success of its so-called ´capital-light strategy´ at growing its asset management and unit-linked savings business, which contributed the major part of the growth in operating earnings, which were up by 13% and now comprise 32% of operating profit. In contrast, its insurance risk businesses reported flat earnings. As well, they see scope for further structural increases in dividend once uncertainty over Solvency 2 is resolved. Broker Credit Suisse has today lifted its target price on shares of engineering group IMI significantly, to 930p from 740p previously. That on a more stable outlook for Europe than it had assumed, which has led it to increase its forecasts for adjusted earnings before interest and tax by 12.2% and 14.9% for the years 2012 and 2013, respectively. Another factor behind the upgrades is the consolidation of acquisitions. Nonetheless, their final conclusion is that , "we believe that IMI will again be a growth laggard in 2012 and set our 930p target price on the basis of IMI trading on 11.8x 2012E, a 10% discount to the UK sector (13.1x)."Credit Suisse has this morning decided to raise its price target on shares of food and support services firm Compass.The above due to both cyclical and structural factors. As regards the former, these analysts highlight the fact that, "cyclical trends are encouraging, especially in the US with hours worked growth rising to 3% and our geographically weighted Manpower survey of hiring intentions at its highest since Q3 2008 - we estimate each 1% of extra cyclical revenue adds 2% to earnings per share."As well, and from a structural point of view, Credit Suisse calls attention to the pick-up seen in awards for catering contracts in the European public sector. These are running up at a 16% year-on-year pace and are now 67% higher than four years ago back.AB