Phoenix Group Shares (PHNX) – Price Target Raised, Analyst Remains Bearish

Phoenix Group shares (LON:PHNX) have moved back from 52 week highs, yet appear to be holding firm above 650p after a strong start to 2025 moves into the second half..

Year-to-date, Phoenix Group has rewarded holders with a return of 28%, yet the bullish narrative is not without its counterpoints. 

JPMorgan has revised its price target for Phoenix Group upwards from 565p to 595p which, whilst to the upside from the previous view, remains below current price action. Unsurprisingly then, the firm maintained an “Underweight” rating on the shares.

This seemingly contradictory stance suggests that JPMorgan believes the stock's current valuation leaves limited room for further appreciation, even with the revised target. This perspective highlights a potential divergence between the market's enthusiasm and a more measured, fundamental analysis of the company's prospects.

From a historical perspective, Phoenix Group has delivered a compound annual growth rate of about 16.5% since late 2019. Furthermore, the dividend yields are particularly attractive above 8%.

This latest price target rise is somewhat of a mixed bag. While the stock has demonstrated strong growth, attractive dividend yields, and positive technical indicators, the “Underweight” rating from JPMorgan, and accompanying target suggests almost a 10% pullback from here.