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Allianz: Oddo BHF raises target price

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on Allianz shares, raising its target price from E288 to E324.


With the company due to publish its quarterly net income (NI) on 13 November, Oddo BHF anticipates a marked rise in NI (vs. a favourable comparison basis) to E2,399m (+18.7%) and a core adjusted NI (which serves as the basis for determining the dividend) of E2,417m (+17.3%) marginally above consensus (E2,394m and E2,435m respectively).

We forecast a solvency margin of 207% at the end of September (vs. consensus of 208%), up 1 point on the end of June, the analyst adds.

Oddo BHF believes that Allianz continues to benefit from significant rate increases in personal lines property & casualty, and that Pimco should eventually benefit from an acceleration in its net inflows as the yield curve in the US "steepens".

Pimco will present its new strategic plan on 10 December, the broker concludes.


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