CFRA raises Swiss Life stock rating, boosts price target to CHF800

Published 20/05/2025, 13:04
CFRA raises Swiss Life stock rating, boosts price target to CHF800

On Tuesday, Swiss Life (SIX:SLHN) Holding’s stock rating was upgraded by CFRA analyst Alex Goh from ’Sell’ to ’Hold’, with an increased price target set at CHF800.00, up from the previous CHF710.00. The adjustment reflects a new valuation based on an anticipated price-to-book value (P/BV) ratio of 3.0 times by 2025, a significant increase from the three-year mean of 2.0 times.

Swiss Life reported a 6% year-over-year increase in total revenue, reaching CHF8.58 billion in the first quarter of 2025. This figure comprises CHF7.9 billion in premiums and CHF659 million in fees. This performance aligns with the company’s objectives outlined in the "Swiss Life 2027" growth program. Notably, fee income, a critical component of the growth strategy, rose by 3% year-over-year, consistent with the company’s 2027 goal of surpassing CHF1 billion in fee results. This would mark a 14% increase from CHF875 million reported in 2024.

The company’s third-party asset management business demonstrated strong quarterly growth, with an 8% increase to CHF135 billion as of the end of March 2025. However, international fee income experienced a 5% decline year-over-year. Despite this, the Swiss insurer’s Swiss Solvency Test (SST) ratio remained solid at 200%, compared to 201% in December 2024, comfortably within the targeted range of 140% to 190%.

Swiss Life’s ongoing CHF750 million share buyback program underscores the company’s confidence in its capital adequacy and financial health. In light of these developments, CFRA has raised its earnings per share (EPS) forecasts for Swiss Life to CHF45 for 2025, up from CHF43, and to CHF48.10 for 2026, up from CHF45.60. The revised estimates and the company’s steady progress toward achieving management’s targets have contributed to the upgraded rating to ’Hold’.

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