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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

RBC Capital resumes coverage of Aviva at 'outperform'

(Sharecast News) - RBC Capital Markets resumed coverage of Aviva on Monday with an 'outperform' rating and 800p price target. "With the acquisition of Direct Line complete, Aviva is positioned for enhanced earnings per share growth and returns on capital, reflecting a shift towards a higher proportion of 'capital-light' business," the bank said.

"As such, we see the 13 November 'In Focus' event as a positive catalyst, where new, above consensus, group targets will be unveiled, supported by DLG synergy upside."

In addition, RBC said that given Aviva's now larger market cap and more diversified profile, the EU composites become more appropriate peers.

"Aviva's 10x FY26 estimared price-to-earnings and 17% EPS compound annual growth rate stand out as attractive versus this sub-sector, supporting our outperform rating," it said.

At 1030 BST, the shares were 1% higher at 678.80p.

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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