AXA: RBC increases target price on US plans.
(CercleFinance.com) - RBC Capital Markets on Friday maintained its "outperform" rating on AXA, saying that the proposed partial IPO of the French insurer's US businesses could drive margin expansion.
An IPO of part of the group's US life and asset management operations could well accelerate the portfolio shift toward higher-growth and higher-margin areas, RBC said.
Over the longer term, the broker expects this momentum to drive greater earnings growth in Life and property-casualty (P&C), prompting the analyst to increase its target price from 26 euros to 28 euros.
RBC estimates the overall value of AXA's US operations at around 12.4 billion euros, or 5.1 euros per share.
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