AV.

The UK’s largest insurance group saw its shares plunge in March, by about 100p to the 740p level. Then the shares climbed again, but they have been on a downward journey since May, and are now trading at around 660p. However, as CEO Andrew Moss settles in, the company is making deals in Asia. It has started a JV with an Italian bank, and created a long-term collaboration with a dutch mutual health insurance provider to sell its health insurance products. The company should not be affected massively by the UK floods either, and City Index Advisory reckons that Aviva is now trading at a 22% discount, with its fair value reading set at 806p, having been heavily oversold for the past weeks. The CFD and spread betting broker adds that, even though the sell-off over the past five days may not yet be complete, the current price represents ‘fantastic value’ on a multi-week time frame.

ACTION: BUY Aviva • Target 720p • Stop loss 600p

TIME TARGET: 4 WEEKS