CNP Assurances progresses on the Paris Stock Exchange, supported by a note from Berenberg, changed from “keep” to “buy” on the value.
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CNP Assurances buoyed by a recommendation to buy from Berenberg | Crédits photo : shutterstock
CNP Assurances gained up to 2.6% on Wednesday on the Paris Stock Exchange, supported by a favorable rating from Berenberg, passed to purchase on the value, against “keep” previously.
The analyst author of the note underlines that the insurer’s strategy has evolved, its priority no longer being the growth of its turnover, but the transformation of its existing portfolio in life insurance in France. To achieve this, the group seeks to encourage its clients to switch from contracts in euros to unit-linked contracts, which are more profitable. Which should be favorable during the course of the action.
Highest price target among analysts
The group is aiming for a target of 30% of unit-linked life insurance contracts in France by 2030, against 26.6% in 2020, a strategy likely to reduce its prudential obligations in terms of capital by 1, 9 billion euros, or about 12%, by 2027. The broker also estimates that dividend growth could reach 10% per year between 2020 and 2027, against 6% previously.
Berenberg also raises its price target on CNP Assurances from 16.50 to 21.40 euros, ie the highest potential in the market. Of the analysts following the value selected by Bloomberg, five are buying, two holding and none selling.
The title still wins 1.2% to 16.44 euros at midday. Since the beginning of the year, the action has posted a gain of 25%, against 7.3% for the Cac 40 and 11% for the Stoxx 600 of insurance.
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