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Barclays (LON:BARC) downgraded Allianz (ETR:ALVG) SE (ALV:GR) (OTC:AZSEY) from Equalweight to Underweight on Thursday, setting a price target of EUR325.00 for the German insurance giant.
The downgrade reflects Barclays’ estimates running approximately 2% below consensus across 2025-2028, with the firm seeing 7% downside to its target price compared to 1% average upside for its coverage universe.
Barclays cited "demanding consensus expectations" for Allianz’s property and casualty insurance top-line growth and margin expansion, along with limited scope for capital return surprises as key factors behind the rating change.
The investment bank acknowledged Allianz as a "well-oiled machine and fully optimised," qualities it believes are already recognized by the market.
Barclays noted that Allianz’s recent outperformance of Germany’s DAX index has pushed the stock to valuation levels that are "not entirely consistent with fundamentals," suggesting limited upside potential for investors.
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