Aviva shares could hit 350p, says Deutsche Bank ahead of H1 earnings

Shares in Aviva have struggled amid the Covid-19 crisis, but analysts at Deutsche Bank think the stock will rebound after the company sold its Friends Provident International unit to bolster its balance sheet.

Aviva has seen its shares take a major hit as a result of the economic fallout from the coronavirus pandemic, with the stock down 34% year-to-date after hitting a low of 211p in March.

But analysts at Deutsche Bank remain optimistic about the insurer’s share price trajectory ahead of its half-year results on Thursday 6 August, with the German lender reiterating its ‘hold’ rating and issuing a target price of 350p in July - implying a potential upside for the stock of 26%.

Aviva is trading at 278p per share at the time of publication.

New CEO to end 'business as usual' at Aviva

Investors are eager for an update on Aviva’s performance on Thursday when the company reveals its first set of earnings under new Amanda Blanc.

Blanc took the helm in last month and faces an uphill battle at the British insurer, with the company shedding almost 50% off the value of its share price over the last five years due to poor growth in Europe.

The path that Aviva will take to strengthen its business is unclear at this stage, with some investors hoping for M&A activity in the form of a major merger or acquisition, while others would like to see the group separate its life and general insurances units to help streamline operations.

Whatever direction Blanc and her management team opt to take, the new CEO has promised to bring an end to ‘business as usual’ at Aviva in this year.

Aviva sells Friends Provident International unit in revised deal

Last month, Aviva announced it had finalised the sale of its Friends Provident International to International Financial Group (IFGL) in a revised deal valued at £259 million.

The revision of the deal terms sees Aviva sell a 76% stake in Friends Provident International rather the entire business for £340 million which it originally had considered.m

‘Aviva and IFGL have entered into a shareholders' agreement under which Aviva has certain ongoing commitments and customary rights given the minority shareholding,’ the company said in a statement.

‘FPIL will continue to serve customers, partners and intermediaries as usual and there is no change to customers' policies as a result of today's announcement,’ Aviva added.

The impact the sale has on Aviva’s capital ratios will be minor, but proceeds from the disposal will help bolster the company’s balance sheet at a time when regulators are advising businesses to raise capital to offset the economic impact of Covid-19.

How to trade stocks with IG

Looking to trade the Aviva and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Aviva’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.