Axa: BofA says not too late to buy stock

(CercleFinance.com) - On Monday Bank of America renewed its buy rating on AXA shares, maintaining its target price at E35.


In a report, the US investment bank said that the French insurer remains one of its best picks in the sector, with a valuation deemed "extremely attractive".

"The company has reduced volatility of XL and is building a track record of buybacks", BofA believes.

The New York broker praises the company's "attractive" business portfolio, which is now characterised by lower earnings volatility.

"Yet it trades on just 7x 2024E IFRS17 earnings, with a 9.2% all-in capital return yield (6.8% dividend yield + 2.4% buyback)," adds BofA.

The bank stresses that investors' attention will now focus on the group's next strategic plan, expected at the beginning of 2024, which it expects to set a growth target of close to 10% for both EPS and dividends, as well as E4.5bn in share buybacks.


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