AXA: Credit Suisse raises target price
(CercleFinance.com) - Credit Suisse reinstates its "outperform" rating on the AXA stock, having increased its corresponding target price from 24.
5 euros to 26 euros, believing that there is "significant further valuation upside potential in AXA after FY20 results".
While the stock "Continues to trade at a higher implied cost of equity than peers", the broker believes that "many of the concerns that have driven this recently (relative balance sheet, AXA XL profit outlook) have been very substantially addressed at FY20".
"The Group Solvency II ratio is now back in-line with peers, liquidity buffers are strong and risks to the P&C (property & casualty) insurance division now seem a lot lower given a number of management actions", it continues.
Copyright (c) 2021 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.
5 euros to 26 euros, believing that there is "significant further valuation upside potential in AXA after FY20 results".
While the stock "Continues to trade at a higher implied cost of equity than peers", the broker believes that "many of the concerns that have driven this recently (relative balance sheet, AXA XL profit outlook) have been very substantially addressed at FY20".
"The Group Solvency II ratio is now back in-line with peers, liquidity buffers are strong and risks to the P&C (property & casualty) insurance division now seem a lot lower given a number of management actions", it continues.
Copyright (c) 2021 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.