Allianz: Jefferies still a buyer despite provision
(CercleFinance.com) - Jefferies has confirmed its buy rating on Allianz shares with a target price of 260 euros after the group announced its Q1 2022 results.
Allianz reported Q1 profit of 600 million euros, including a 1.9 billion euro provision for AGI (which is both lower and earlier than expected, the analyst said).
Excluding this provision, 2022 net profit would have been +11.6% ahead of consensus.
"The most material benefit is that this provision comes a quarter earlier than anticipated, thereby removing a substantial overhang on the shares. Excluding the E1.6bn impact (net of tax) that this provision had, group net income for 1Q would have been E2.2bn," Jefferies said.
"Group operating profit was E3.2bn, +6.0% ahead of the E3.0bn consensus had been expecting for 1Q 2022".
The market clearly agrees - the Allianz share is currently up over 4% in Frankfurt.
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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.
Allianz reported Q1 profit of 600 million euros, including a 1.9 billion euro provision for AGI (which is both lower and earlier than expected, the analyst said).
Excluding this provision, 2022 net profit would have been +11.6% ahead of consensus.
"The most material benefit is that this provision comes a quarter earlier than anticipated, thereby removing a substantial overhang on the shares. Excluding the E1.6bn impact (net of tax) that this provision had, group net income for 1Q would have been E2.2bn," Jefferies said.
"Group operating profit was E3.2bn, +6.0% ahead of the E3.0bn consensus had been expecting for 1Q 2022".
The market clearly agrees - the Allianz share is currently up over 4% in Frankfurt.
Copyright (c) 2022 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.