Allianz: Oddo still a buyer, raises target price

(CercleFinance.com) - Oddo BHF has reiterated its "outperform" recommendation on Allianz shares, nudging up its earnings estimates and target price, from 240 euros to 242 euros, after the company reported better-than-expected H1 results on Friday.


In its new price target, a pre-tax litigation charge in the US is more than offset by an increase in underlying OP, share repurchases and a slight fall in the cost of capital in life assurance (improved risk profile).

The broker considers that the uncertainty of US litigation should not mask the group's strength, and that weak multiples (2022 P/E of 9x) do not reflect the quality of Allianz's business model.



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