(CercleFinance.com) – Berenberg renewed its purchase recommendation on AXA shares on Friday with a price target revised upwards from 33.5 to 37.3 euros.
In a note, the analyst argues that the announcement this week of the reinsurance contract concluded with AXA Réassurance Vie France, which should result in a share buyback program of around 500 million euros, accredits its forecast according to which the insurer is preparing to launch two billion euros of share buybacks in 2024.
The intermediary adds that sales of activities – such as that of the borrower insurance business mentioned this week in the press – could generate resources with a view to additional remuneration for shareholders.
Likewise, Berenberg believes that the decision to present the new strategic plan for 2024-2026 on February 22, the same day as the publication of the 2023 annual results, illustrates the group’s desire to carry out an ‘evolution’ of its model, rather than a ‘revolution’.
‘We believe that it is in line with AXA’s strategy of offering a reduced level of risk for its investors, a choice which we believe should lead to a gradual and continuous revaluation of the stock, but not spectacular’ , underlines the professional.
Berenberg specifies that AXA is today his second favorite stock within the sector behind Allianz.
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