SL.

The Edinburgh-based insurer is rumoured to be joining the consolidation frenzy that is taking off in the UK life insurance sector. Gossips have it that the group is mulling over its own rival bid for Resolution (RSL), which is currently in the midst of a merger with Friends Provident (FP.), while a cash offer for Resolution, from Hugh Osmond’s Pearl Assurance, is also on the cards. The Shares of the company were down almost 1.5% on Monday and, at the end of July, the price almost hit the year low of 284p after a strong rally that took it to almost 350p at the end of May. City Index Advisory’s platform, Apollo, sees fair value at 345p, despite negative sentiment about the stock. Half-year figures are due in a month, and the consolidation story could send the price up. City Index’s platform adds that the fair-value figure should be watched closely.

ACTION: BUY Standard Life • Target 380p • Stop loss 290p

TIME TARGET: 5 WEEKS