Broker snap: UBS slashes target for Legal & General

Following a sector de-rating, Swiss investment bank UBS has cut its target price for FTSE 100 insurance group Legal & General from 114p to 95p."The sector has de-rated by some 9% in the market turmoil since June. Our 2012E shareholders' equity forecast reduced by 5% at interims. We are therefore reducing our price target," said analyst James Pearce.Pearce said that while Legal & General's management seem set to ensure capital strength is not hindered by regulators/markets, the company "risks eroding returns further by hoarding capital in a market where trading conditions are likely to deteriorate, particularly in the key annuity product."A neutral rating is maintained.BC