M&G Shares Steady as Morgan Stanley Starts Coverage at Equal-Weight

Morgan Stanley initiated coverage of M&G plc (LSE: MNG) at Equal-Weight on Monday, arguing the FTSE 100 insurer and asset manager’s shares now largely reflect the strong operational momentum that has driven a blistering 2026 rally.

M&G shares closed at 354.9p on the day of the initiation, just below the 52-week high of 359.3p touched on July 23, and up roughly 24% since the start of the year from a 52-week low near 247p set in September 2025.

The stock’s advance has been propelled by a string of bulk purchase annuity (BPA) wins, most recently a £760 million buy-in with Smiths Group’s pension scheme completed last week — the fifth and final transaction covering that scheme’s members.

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M&G is targeting £3–4 billion in annual BPA sales by 2027 after writing £1.5 billion in 2025, part of a booming UK bulk annuity market that saw a record £38.2 billion in deals last year.

With a market capitalisation of about £8.5 billion, a forward P/E near 13x, and a dividend yield around 5.8%, M&G continues to attract attention for its income appeal and capital-return story. Analyst opinion remains split: Morgan Stanley recently lifted its price target to 310p and Citi to 295p, while Goldman Sachs downgraded the stock even as shares pushed to fresh highs.

Morgan Stanley’s Equal-Weight call suggests the bank sees the current valuation as fair rather than compelling, with investors now watching M&G’s upcoming trading update to gauge whether the rally has further room to run.