---
title: "Derald Goh Reiterates Sell on Legal & General, Citing Weakening Income Profile, Constrained Capital Flexibility and Slower Dividend Growth"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285039033.md"
description: "Derald Goh from Jefferies has downgraded Legal & General to a Sell with a price target of p185.00, citing a weakening income profile, constrained capital flexibility, and slower dividend growth. He notes that the company's ability to generate surplus is barely enough to fund dividends, limiting capital returns and strategic maneuvers. Compared to other high-yield financials, LGEN shows slower dividend growth and a weaker balance sheet, justifying a lower valuation. Goh has a 16.0% average return and a 79.03% success rate on his stock recommendations."
datetime: "2026-05-04T07:15:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285039033.md)
  - [en](https://longbridge.com/en/news/285039033.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285039033.md)
---

# Derald Goh Reiterates Sell on Legal & General, Citing Weakening Income Profile, Constrained Capital Flexibility and Slower Dividend Growth

In a report released yesterday, Derald Goh from Jefferies downgraded Legal & General to a Sell, with a price target of p185.00.

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Derald Goh has given his Sell rating due to a combination of factors tied to Legal & General’s weakening income profile and constrained capital flexibility. He argues that the company’s ability to generate regulatory surplus is barely sufficient to fund its dividend, leaving little room for additional capital returns or strategic balance-sheet maneuvers, especially as solvency ratios drift lower and leverage remains above what investors typically consider comfortable.

At the same time, a meaningful portion of surplus generation depends on discretionary management actions, such as portfolio risk-taking and assumption changes, which are uncertain and sensitive to market conditions. When compared with other high-yield financials in Europe and the U.K., he believes LGEN offers slower dividend growth, no realistic prospect of buybacks, and a less robust balance sheet, justifying a lower valuation and his underperform stance.

Goh covers the Financial sector, focusing on stocks such as Lancashire Holdings, Admiral, and Beazley. According to TipRanks, Goh has an average return of 16.0% and a 79.03% success rate on recommended stocks.

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