AXAHY - AXA: Short-Term Volatility Long-Term Gain
2024-06-19 12:30:08 ET
Summary
- Macron's decision to dissolve the government led to market instability in France, affecting AXA's valuation.
- Price increases are a vital driver of revenue growth. AXA Q1 was also supported by higher asset management profits boosted by AuM flows.
- Solid balance sheet and attractive valuation. This is a clear buy.
Following our last publication, Unlock The Future, Buy Rating Confirmed , the European election results penalized AXA SA's stock price ( OTCQX:AXAHY , OTCQX:AXAHF ). Before going into the details, the French company is one of the world's largest insurers. AXA operates primarily in the life and health (L&H), property and casualty (P&C), and asset management business. After a brief comment on the Q1 results (we cover the EU insurance sector with regular updates on Zurich and Allianz and regional insurer players such as Aegon), we notice we have been missing a follow-up note on our favorite French insurance provider. That said, from a valuation perspective, AXA is now a bargain....
AXA: Short-Term Volatility, Long-Term Gain