Legal & General has potential to over-deliver as it branches out

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Insurance giant Legal & General Group PLC has “promising potential to under-promise and over-deliver”, according to Barclays:


“The macroeconomic and investor landscapes are changing as demand for green assets rapidly increases. We believe that Legal & General (L&G) is fast becoming a group driven not only by the supply of life liabilities (they lead the UK bulk annuity market) but increasingly also by demand for its unique asset generation abilities in L&G Capital (LGC),” the broker added.


The LGC unit makes direct investments into alternative assets, such as housing, infrastructure and energy.


Barclays estimates that LGC’s current direct investment pipeline could drive a pipeline that is more than double management’s targeted 2025 level.


The broker has upped its price target by 9% to 388p and reiterated its ‘overweight’ recommendation.


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