This FTSE 100 stock will smash Aviva, Legal & General, and Phoenix shares over the next 12 months, according to analysts

Shares in Aviva, Authorized & Normal, and Phoenix Group have all delivered nice returns this 12 months. Particularly while you issue within the huge dividends that these FTSE insurance coverage shares pay.

Trying forward, these shares might proceed to reward buyers. Nevertheless, there’s one other insurance coverage inventory with rather more potential, in response to Metropolis analysts.

Working out of steam quickly?

dealer share value targets, analysts don’t appear to imagine that Aviva, Authorized & Normal, and Phoenix Group can climb a lot greater.

Presently, the typical value goal for Aviva is definitely 2% beneath the present share value. For Authorized & Normal and Phoenix, the targets are 2% and 4% above present share costs, respectively.

In fact, these shares might present a lot greater returns as a result of huge dividends yields on supply. Presently, these shares yield between 6% and 9%.

General, nonetheless, complete returns aren’t anticipated to be big over the following 12 months. Factoring in dividends, the typical anticipated complete return is about 9%.

3 times the return?

Now, the inventory that analysts see extra potential in is sweet previous Prudential (LSE: PRU). It’s had a tough few years because of financial weak spot in China however it’s now making a significant comeback, having jumped from 637p to 923p this 12 months.

Analysts imagine it will possibly climb a lot greater over the following 12 months. Presently, the typical value goal is 1,188p, which is 29% greater than as we speak’s share value.

Observe that there’s a 2% dividend yield on supply from this inventory. So if the typical analyst value goal is achieved, buyers could be complete returns of about 31% – greater than thrice the typical anticipated return from Aviva, Authorized & Normal, and Phoenix Group.

Share value catalysts

Why are analysts so bullish right here?

Effectively, one motive is that the corporate’s steerage has been very encouraging recently. Again in March, the insurer stated that it was anticipating new enterprise revenue, earnings per share, and dividends per share to all rise by greater than 10% this 12 months.

Another excuse is that the present valuation seems to be low relative to the long-term potential related to its key markets of focus, Asia and Africa. Presently, Prudential has a price-to-earnings (P/E) ratio of simply 10 while you have a look at the earnings per share forecast for subsequent 12 months.

Insurance coverage penetration charges in Asia are low and there may be continued, and rising, demand for long run financial savings and safety merchandise throughout our markets, alongside a necessity for wealth administration and retirement planning, significantly in our greater earnings Asian markets.
Prudential CEO Anil Wadhwani, March 2025

Value a glance

In fact, there aren’t any ensures that Prudential shares will get to 1,188p any time quickly. Whereas the inventory is in a powerful uptrend proper now, this development might back off if financial situations in Asia all of the sudden take a flip for the more severe.

I believe the set-up seems to be enticing as we speak, nonetheless. On a P/E ratio of 10, I imagine the inventory is price contemplating.