Allianz’s operating figures have exceeded market expectations, but are overshadowed by a provision for the billion-dollar lawsuits in the USA. Despite this, DER SHAREHOLDER assesses the results very positively. That’s what the analysts who cover the insurer recommend.
DZ Bank has raised the fair value of the share from EUR 240 to EUR 250 and left the rating at “buy”. The excellent operational development was overshadowed by the debacle surrounding Allianz Global Investors (AGI) structured alpha funds, wrote analyst Thorsten Wenzel in a study available on Friday. This is “now at least partially financially processed”.
The major Swiss bank UBS also advises buying with a price target of 243 euros. Analyst Will Hardcastle wrote that the insurer’s higher provisions were more weighty than its announced share buybacks.
Deutsche Bank also leaves Allianz on “Buy” with a price target of EUR 260. More important than the insurer’s apparently strong business results are the billions in provisions to settle a lawsuit in the United States, wrote analyst Hadley Cohen. As long as the latter has not been completely resolved, it will probably continue to weigh on the share.
The analysis firm Jefferies also sticks to its buy recommendation with a price target of EUR 265. In a first reaction, analyst Philip Kett spoke of the insurer’s encouraging fourth-quarter results. The operating profit has exceeded expectations in all areas and the legal dispute in the USA is not nearly as expensive as feared, according to Kett.
The US bank JPMorgan, on the other hand, rates the stock as “neutral”. Analyst Kamran Hossain initially reacted positively to the share buyback program because it shows that the major insurer can cope with current and future higher costs. The proposed dividend is in line with expectations. The expert predicts that the consensus estimates for 2022 should not change much after the news.
THE SHAREHOLDER assesses the figures as positive. Should the Allianz share fall again to 195 to 200 euros in the current environment, these are buying prices.
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Notice of Conflicts of Interest:
The CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that may benefit from any price development resulting from the publication: Allianz.
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