Legal & General's Valuation Seems Stretched -- Market Talk

0819 GMT - Legal & General's valuation looks demanding as the U.K. financial services group faces lower-than-expected remittances in 2026 due to a fall in pension buyout volumes, Citi analysts say. Citi cuts its recommendation on L&G to sell from neutral, citing valuation concerns after a year-to-date rally. Citi reduces its 2026 through 2027 remittances estimate by 4.5% due to lower pension buyout volumes underwritten at a reduced margin. L&G's core operating EPS is likely to grow 8% this year, undershooting the group's guidance of 9%, according to Citi. Takeover speculation could still push the stock higher, but L&G has said it is focused solely on executing its strategy, the analysts say. Shares are down 1.8% at 310.69 pence, but are still up 18% since the start of 2026.(michael.hennessey@wsj.com)

(END) Dow Jones Newswires

August 10, 2026 04:19 ET (08:19 GMT)