Aviva Share Forecast

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Aviva Share Forecast

Aviva (Av) Share Forecast For Long Term

Aviva (LSE: AV.) is one of those rare shares about which none of the analysts are bearish! So, it's clear that the Aviva stock is a buy, but many are wondering where the price will go in the long term.

According to Citigroup, Aviva can reach a price target of 687p. In addition, JP Morgan has issued a forecast of 735p for the Aviva stock.

Analysts Are Bullish On Aviva

Also, the Aviva stock is famous for its dividends, and we can't discuss this without looking at dividends. According to analysts, the dividend yield of Aviva will be 5.5% this year.

However, many experts believe that the dividend yield of Aviva will only rise in the coming years. So, the average growth rate of dividends will be 25% during the next 2-3 years.

As for the P/E, the forecast is for 13.2, which is once again a bullish signal for the stock. A P/E ratio like this means the Aviva stock could easily jump to 840p.

And if you think about it, it makes sense for the stock to reach these targets given its solid business structure and the dividend history.

However, one particular fear for Aviva is its stock valuation. A lot of investors were not happy with its valuation, but that turned out to be completely false! After all, the stock is doing really good after so many years.

Looking ahead, analysts believe that the Aviva stock may go through a healthy correction. However, that's completely normal given that the stock price has risen so much over the years.

Given that Aviva is in a highly volatile sector such as insurance, its performance is nothing short of amazing. Even in the next 2-3 years, the business of Aviva looks pretty strong.

However, the economic slowdown in the UK could pose some risk for the Aviva stock. But that's something about which we will have to wait and see.

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