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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.

Citi puts Legal & General on 'negative catalyst watch' ahead of results

(Sharecast News) - Legal & General was under the cosh on Friday as Citi cut its 2023 earnings per share estimates and opened a 30-day 'negative catalyst watch' on the shares ahead of full-year results on 6 March. The bank cut its 2023 EPS estimate by around 27%, primarily driven by negative investment variances but said its operating profit estimate also declined, by around 3%.

"There is some follow to the outer years as our EPS estimates decline by circa 10%," it said.

Citi said it expects material EPS downgrades into results "and although this is primarily investment variance driven, this highlights the opacity of Legal & General Capital (LGC) and comes against a backdrop of L&G being the best performing UK life insurer over the past three months and what we see as limited upside capital return surprise potential".

At 0812 GMT, the shares were down 2.7% at 234.70p.

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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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