AXA: Oddo's best pick in insurance sector

(CercleFinance.com) - This morning AXA announced the sale price of its AXA Equitable Holdings (AEH) shares at 20.
85 dollars per share.
The group received net proceeds of 834 million dollars from this sale. It also agreed the acquisition of 6 million additional shares.

Oddo says that this new sale of AEH shares will help strengthen AXA's financial leeway and believes that it will have a positive impact of around 2 points on AXA's solvency margin, Oddo says.

Oddo says that this will also improve AXA's ability to reduce its debt, which had gearing of 32% at the end of 2018. The insurer targets gearing of less than or equal to 28% by the end of 2020. Oddo still believes that this target is within reach. In any cases, the group has some flexibility to achieve its target in terms of debt reduction.

Oddo confirms its Buy rating on the stock, which is one of its best picks and remains its favourite stock in the insurance sector. It adds that the group should report strong growth in operating profit in 2019/20.



Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.