AXAHY - AXA: Looking If My Downgrade Was Premature

2024-05-15 20:55:48 ET

Summary

• AXA SA's share price has outperformed the index, leading to a question of whether the rating change to "HOLD" was premature.
• Indicators suggest that AXA is becoming overvalued, with the share price trading well above €30/share.
• Despite strong performance and achievements, the main risk for AXA is now valuation, and the upside is limited.

Dear readers/followers,

I recently downgraded (though, in December 2023) AXA SA ( AXAHY ) (AXAHF) as an investment from a long-time "BUY" rating to a "HOLD" rating. You can find my last article on the company here, and since that time the company has actually outperformed the index somewhat.

This is also the reason why I am asking if perhaps I went in with my rating change too early. It's one of the things I sometimes am prone to do. Because I am so valuation-focused, it's not unheard of that my rating changes come at times when the company in question still has "room to run"....

For further details see: