Oddo BHF Remains Positive on AXA, Raises Target Price
The analyst reiterates his "outperform" recommendation on AXA shares, with a slightly increased price target from 44 to 45 euros, notably to reflect the switch to a year-end 2026 target for the insurance company's stock.
"Our price target incorporates a prudent cost of capital and corresponds to a 2027 PE of only 10.1 times. The potential for growth in RO per share and the high level of capital return to shareholders remain significantly undervalued by the market," the analyst states.
With AXA set to release its 2025 results on February 26, the research firm forecasts revenues of 116.3 billion euros (+5.4% reported, +6.3% on a comparable basis), as well as RO per share of 3.84 EUR, in line with consensus and up 7%.
Oddo BHF also anticipates an attractive capital return to shareholders, expecting a dividend per share of 2.29 EUR (+6.5%), slightly below consensus (2.31 EUR), and a share buyback of 1.3 billion EUR for 2025.
AXA is the European leading insurance group. Net sales break down by activity as follows:
- damage insurance (62.7%): mainly car insurance, home insurance, property damage, civil liability, and major risk insurance. The group also offers assistance services (medical assistance for travelers, breakdown service for vehicles, etc.);
- life insurance (35.9%): sale of savings policies, retirement accounts, estate planning services, and health insurance to individuals and companies;
- other (1.4%): mainly banking activities in France, Belgium and Germany.
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