Broker snap: Jefferies not convinced with Aviva's new strategy

5th Jul 2012 12:04

Jefferies has maintained its 'hold' recommendation and 281p target price for insurance group Aviva, saying that new strategies are going to take some time to enforce.Executive Chairman John McFarlane outlined details of the company's new strategic direction on Thursday which, not for the first time, will result in changes at the senior management level. The new strategy has three main objectives: narrower focus; building financial strength; and improving financial performance."Management has done what it can but the scale of the task ahead is significant and will take time. This is at least a two-year turnaround story with economic capital likely to remain below target during a volatile macro period," said analysts at Jefferies."We would have preferred more detail around securing this volatility and divisional detail on where economic capital resides, but we think expectations were carefully managed and McFarlane comes across well."Investors seemed pleased with the developments, with shares trading 2.49% higher at 288.4p by midday.BC