Citi downgrades Legal & General to 'sell'

(Sharecast News) - Citi downgraded Legal & General on Monday to 'sell' from 'neutral' on valuation grounds and cut the price target to 245p from 251p as it noted the shares are up 19% year to date. The bank said it was cutting its 2026-27 remittances by 4.5% following the first-half results. "This reflects lower pension buyout volumes underwritten at a reduced IFRS margin offset by higher operating profit from asset management driven by lower CIR, and an additional £100m per annum from asset optimisation actions," it said.

Citi said its core operating profit forecast continues to be broadly in-line with Visible Alpha consensus in 2026 and 2027.

"Our core operating EPS is expected to grow by 8% YoY compared to the company's communicated 9% outlook," it said.

The bank said it was making no changes to its 2026 dividend per share estimate.

At 0948 BST, the shares were down 1.7% at 311p.