AXA's Buy Rating Unchanged as Berenberg Notes 'Highly Attractive' FY27-FY29 Targets

01:45 AM EDT, 09/17/2026 (MT Newswires) -- Berenberg maintained its buy rating on AXA (CS.PA), with a price target of 77 euros, saying it views the French insurer's new 2027 to 2029 financial targets as "highly attractive." In a Wednesday report, the research firm noted that AXA's updated strategic plan is anchored by three primary drivers, including a 1% upgrade to underlying EPS compound annual growth rate to between 7% and 9%, an increased return on equity target of 15% to 17% from 14% to 16% previously, and more than 25 billion euros in overall cash remittances for 2027 to 2029, above the over 21-billion-euro target for the current three-year period. Additionally, the group introduced new targets for over 5% top-line CAGR and a mid-teens book value per share growth rate. "We believe the target to grow the top line is the most significant new driver in AXA's strategic plan. This target is very granular, as it includes an implicit assumption of, we estimate, a c7% CAGR for retail and SMEs, implying market share gains in retail due to direct and inclusive insurance policies, and in SMEs due to higher retention, and a realistic, low-single-digit (we estimate 2%) CAGR at AXA XL reflecting the cyclical headwinds across reinsurance and commercial lines," analysts wrote. Berenberg also highlighted that share buybacks serve as the final catalyst for the new underlying EPS growth target. It noted that share repurchases will now account for 1% of annual EPS growth, down from 2% in the previous plan, lifting the group's target underlying earnings growth to 6% to 8%, compared with the 4% to 6% range in 2024 to 2026. "This 2% higher operating profit growth highlights AXA's increased focus on growth," the note said.