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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.

Jefferies downgrades Legal & General

(Sharecast News) - Jefferies downgraded Legal & General on Tuesday to 'underperform' from 'hold' as it said the company's income story is deteriorating. "Solvency surplus generation is fully consumed by dividends, capital optionality is effectively zero, and returns rely increasingly on contingent management actions," the broker said.

"With solvency drifting lower and no buybacks in sight, the equity risk premium looks too low, leaving the stock exposed to a valuation reset and investor rotation to other income alternatives."

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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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