KBW downgrades Aviva to 'underperform'

(Sharecast News) - KBW downgraded Aviva to 'underperform' on Friday, with an unchanged price target of 650p, which offers around 5% downside, after a strong run in the share price.

"We are also swayed by what we believe are relatively elevated valuation multiples against the Big 5 peers even if we credit the group for a further 10% increase in earnings guidance against KBWe / consensus in the 13-Nov business plan update," it said.

"After a strong share price run that we think has been driven by consensus catching up with the Direct Line upside, we think the risk/reward is now poor as UK macro and UK motor fundamentals remain weak."

At 1130 BST, the shares were down 1.5% at 671.20p.

Aviva