(CercleFinance.com) – Bank of America renewed its buy recommendation on AXA on Monday, with a price target kept unchanged at 35 euros.
In a research note, the American investment bank indicates that the French insurer remains one of its favorite securities within the sector, with a valuation deemed “extremely attractive”.
‘The group has succeeded in reducing the volatility of its XL activity and also has a flattering track record in terms of share buybacks’, estimates BofA.
The New York firm hails the company’s ‘attractive’ portfolio of activities, now characterized by less volatility in terms of results.
‘However, the share is only traded on the basis of 7x its expected IFRS results by 2024, with an expected total return on capital of 9.2% (6.8% for the dividend and 2.4% for redemptions of securities’, adds BofA.
The bank stresses that investors’ attention will now be focused on the group’s next strategic plan, expected in early 2024 and which, according to it, should show a growth target of close to 10% for EPS and for the dividend, as well as 4 .5 billion euros in share buybacks.
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