Axa: Oddo BHF keeps stock in best pick list

(CercleFinance.com) - Oddo BHF is maintaining the AXA stock in "Convictions broad cap" best pick list, with a buy rating and a revised target price (by end-2019) of 28 euros, highlighting an attractive policy of returning capital to shareholders.


The broker points out that the stock has largely underperformed its sector since the end of 2017, due to the acquisition of XL Group, and considers that its current discount relative to to the sector (more than 25%) is unjustified.

While it expects the group's H2 2018 earnings to be marked by natural disasters, Oddo BHF believes that it has a favourable earnings growth outlook for 2019, with the insurer's deleveraging set to result in the share's re-rating.



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