Allianz: Commerzbank raises target price
(CercleFinance.com) - Commerzbank reiterates its "buy" rating on Allianz, slightly raising its target price for the share to 235 euros, from 230 euros, following first-quarter results that slighly beat its expectations.
The German bank has raised its earnings estimates for 2018, mainly driven by lowering the tax rate for the group to 26%, compared to 28% previously, as a result of the US tax reform.
According to Allianz, this rate is not only for 2018, but is sustainable over a longer term.
"Our investment case remains unchanged," Commerzbank added. "In order to generate growth, Allianz is accelerating the digital transformation, which means IT harmonization and simplification of products and processes," the bank said, which makes Allianz a "key" buy in the insurance sector.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The German bank has raised its earnings estimates for 2018, mainly driven by lowering the tax rate for the group to 26%, compared to 28% previously, as a result of the US tax reform.
According to Allianz, this rate is not only for 2018, but is sustainable over a longer term.
"Our investment case remains unchanged," Commerzbank added. "In order to generate growth, Allianz is accelerating the digital transformation, which means IT harmonization and simplification of products and processes," the bank said, which makes Allianz a "key" buy in the insurance sector.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.