Broker news !2 Oct 2018 11:00
Jefferies believes there is potential for better dividends at Aviva (AV) as the insurer deleverages.
Analyst Mark Cathcart retained his ‘buy’ recommendation but reduced the target price from 620p to 604p. The shares were trading at 485.6p yesterday.‘Debt levels appear to be the current focus of the Aviva bears despite management claiming absolute comfort on gearing, backed in turn by the recent S&P rating upgrade to positive,’ he said.‘We focus instead on the deleveraging opportunity to dividend paying potential, projecting cash resources sufficient to pay down £3.3 billion of debt maturing through 2022, generating on our calculations a more than 10% boost to cash earnings over the period.’
Personally I cannot see what the problem is ? Fairly stagnant sp at the moment..