AXA: Deutsche Bank upgrades to buy.
(CercleFinance.com) - In a sector report on major European insurance companies, Deutsche Bank has upgraded its "hold" rating on French insurance giant AXA to “buy”.
Alongside this upgrade, it has raised its target price for the share from 26 euros to 27.5 euros.
In general, "Deutsche" considers that the major European insurers (Allianz, Aviva, Generali, AXA and Zurich Insurance) are attractive, thanks to their strong balance sheets, the diversification of their profit sources and excess capital.
Already having positive ratings on the Allianz and Aviva stocks, analysts have now also become buyers of AXA. The main arguments include the share's relative valuation, which has underperformed peers by 11% since the beginning of 2017. Indeed, Deutsche Bank acknowledges that bond yields remain dull, not to mention the execution risk that surrounds the group's mergers and acquisitions strategy.
Copyright (c) 2017 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.
Alongside this upgrade, it has raised its target price for the share from 26 euros to 27.5 euros.
In general, "Deutsche" considers that the major European insurers (Allianz, Aviva, Generali, AXA and Zurich Insurance) are attractive, thanks to their strong balance sheets, the diversification of their profit sources and excess capital.
Already having positive ratings on the Allianz and Aviva stocks, analysts have now also become buyers of AXA. The main arguments include the share's relative valuation, which has underperformed peers by 11% since the beginning of 2017. Indeed, Deutsche Bank acknowledges that bond yields remain dull, not to mention the execution risk that surrounds the group's mergers and acquisitions strategy.
Copyright (c) 2017 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.