DBS analyst Ken Shih maintained a Buy rating on AXA SA (0HAR – Research Report) today and set a price target of €43.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Ken Shih has given his Buy rating due to a combination of factors including AXA SA’s strategic initiatives to boost capital returns and strong financial performance. The company’s gross written premiums and other revenues have increased by 6% in the first quarter of 2024, with significant growth in both the property and casualty (P&C) and life and health (L&H) segments. This growth is driven by favorable pricing and a focus on capital-light businesses, particularly in Europe.
AXA is well-positioned for sustainable growth with a solid strategic plan that aims to reduce financial risk exposure while capitalizing on its strengths in commercial insurance and health segments. The company is expected to maintain earnings momentum, with a projected 13% year-over-year growth and an improvement in return on equity. Additionally, AXA’s diverse geographic and business mix, alongside its strategic focus on high-margin, high-growth life products, particularly in Asia, underpins its potential for long-term value creation. This positive outlook is further supported by AXA’s disciplined capital allocation and commitment to shareholder returns, leading to an increased target price of €43.
In another report released on February 5, Deutsche Bank also maintained a Buy rating on the stock with a €40.00 price target.