- Improved outlook could justify further re-rating for insurer.
- Appraising the AI stock that has out-run even Nvidia.
This week, we’re looking at UK insurer Aviva (AV.) – a popular holding for income investors with an improving outlook which has driven a re-rating of the shares. Our second business is an artificial intelligence play that has even outstripped the returns from Nvidia shares. There are, however, some important questions investors need to ask of this growth story.
Investors have warmed to Aviva’s improving fortunes which has resulted in a substantial upwards re-rating of the valuation of its shares over the last 18 months. The shares have gone from trading at a substantial discount to their forecast book value per share to currently trading at a 40 per cent premium (price to book value ratio of 1.4x).
