AlphaValue has reaffirmed its 'add' recommendation on AXA, while lowering its price target from EUR50.1 to EUR44.9 following the release of the insurer's third-quarter activity indicators.
The analyst notes a shift to a more cautious stance, as the slowdown in property and casualty insurance growth during the third quarter highlights a softening of market conditions. Nevertheless, AXA remains on track to achieve its underlying earnings per share growth target of 6-8% by 2025.
The broker reports that AXA flagged a decline of around 4% in rates for financial lines and property catastrophe coverage, while liability insurance rates are up by 7%, illustrating mixed pricing dynamics within the portfolio.
AlphaValue also points out that this trend is less favorable compared to some major competitors such as Allianz and Generali. As a result, the research firm applies a 20% discount to AXA in sector comparisons, bringing the price target down to EUR44.9.
