AXA: Citi removes from 'Focus List'

(CercleFinance.com) - While maintaining a buy rating on the AXA share, Citi has removed the French insurer from its best picks ("Focus List").

The broker has nudged up its target price for the share from 25.8 euros to 26.2 euros.

Analysts have considered the valuation gap between Allianz and AXA, considering that AXA is more sensitive to interest rates than both its German competitor and the Italian insurance group Generali. This penalises the French group's solvency, although, according to Citi, this cannot fully justify its lower valuation. As such, AXA therefore still has upside potential.

However, and while the stock has risen by 20% y-t-d, Citi is now less optimistic regarding share repurchases, which underpins its decision to remove the share from its Focus List.


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