AXA SA: Strong Growth Potential and Strategic Positioning Justify Buy Rating

DBS analyst Iris Gao maintained a Buy rating on AXA SA (0HAR – Research Report) today and set a price target of €41.00.

Iris Gao has given her Buy rating due to a combination of factors that highlight AXA SA’s strong growth potential and strategic positioning. The company has shown a robust increase in gross written premiums and other revenues, with significant contributions from both the Property & Casualty (P&C) and Life & Health (L&H) segments. AXA’s strategic focus on reducing financial risk exposure and capitalizing on its strengths in commercial insurance and health segments has positioned it well for continued growth and earnings improvement.
Additionally, AXA’s underwriting profit in the P&C segment is on an upward trend, supported by favorable pricing conditions and demand in commercial insurance. The company’s diverse geographic and business mix in the L&H segment, particularly its capital-light operations in Japan and Europe, provide strong growth drivers. AXA’s commitment to delivering compelling capital returns, including a high target payout ratio and substantial share buy-backs, further supports the Buy rating. Despite challenges such as political uncertainty in France, AXA’s strategic initiatives and financial performance make it a resilient choice in the insurance sector.

Gao covers the Financial sector, focusing on stocks such as American Express, Mastercard, and PICC Property & Casualty Co. According to TipRanks, Gao has an average return of 17.3% and an 86.96% success rate on recommended stocks.

In another report released on May 7, UBS also maintained a Buy rating on the stock with a €41.70 price target.