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Investing.com - BofA Securities upgraded Allianz SE (ETR:ALV) (OTC:AZSEY) from Neutral to Buy and raised its price target to EUR410.00 from EUR400.00, citing strong earnings growth potential and diversification advantages.
The financial services firm highlighted Allianz as "one of the highest-quality and best-diversified names" in its coverage, projecting a 10.5% earnings per share compound annual growth rate from 2024 to 2027, exceeding both company targets and market consensus.
BofA Securities noted Allianz offers a 4.8% dividend yield for 2025, expected to grow in line with earnings, while possessing approximately EUR10 billion in "unappreciated" merger and acquisition capacity that could provide additional upside to forecasts.
The research firm views Allianz’s business mix favorably, with property and casualty operations comprising about 60% personal lines compared to roughly two-thirds commercial lines for peers AXA and Zurich, positioning the company advantageously as commercial lines cycles decline.
BofA Securities also expects Allianz’s asset management units to benefit from anticipated interest rate cuts, with net inflows likely to accelerate amid falling bond yields in the U.S. and Europe, contributing to a projected 21% total return potential.
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