Axa: Oddo confirms buy rating
(CercleFinance.com) - Oddo says that the group's H1 revenues reached 52.
4 billion euros (-10% as reported, +2% on a like-for-like basis), close to the consensus.
Oddo reports strong growth in health insurance (+9% at constant data - c.d.) and a sharper decline in life insurance premiums (-8% at c.d. in H1, including -21% in Q2).
Operating profit reached 1,885 million in H1 (-48%), in line with the broker's forecast (1,875 million euros), although above the consensus (1,784 million euros). This includes a net COVID charge of 1.5 billion euros.
Following this results publication, Oddo confirms its buy rating on the share with a target price of 24 euros (42% upside potential).
The market remains skeptical about the profitability of AXA XL, which should however benefit from strong price increases next year. AXA's solvency margin should improve at the end of the year (disposals, integration of XL into the internal model), while the stock remains heavily discounted relative to the rest of the sector, Oddo adds.
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