Barclays Capital has upgraded its recommendation on Legal & General (LON:LGEN) to 'overweight' from 'equal weight', believing the insurance group is "back on the front foot".
It commented: "We upgrade Legal & general to Overweight as we believe the risk of a UK recession has faded while the Sol 2 capital requirements of writing bulk annuities is much more efficient than expected."
Analysts have hiked their target by 42 per cent to 276 pence per share (previously 194 pence), which implies a potential total return of 23 per cent.
Earnings per share estimates have been increased to 20.9 pence (from 20.7 pence), 23.2 pence (from 22.3 pence) and 25.2 pence (from 24.1 pence) for fiscal years 2016 through to 2018, respectively.
At 2:18pm: (LON:LGEN) Legal General Group PLC share price was +3.35p at 239.15p