AXA Shares Stable After Favorable Coverage Resumption by Deutsche Bank

Deutsche Bank Resumes Coverage with Positive Outlook

Deutsche Bank resumed coverage of AXA on Wednesday, January 7, with a buy recommendation and a price target set at 45 euros, representing an 11.7% potential increase from the closing price of 40.30 euros. This move is part of a broader analysis of the attractive European insurance sector by the German bank. Deutsche Bank expects a profit growth of about 9%, accompanied by a normalized dividend yield of 4.5%, supported by solvency ratios well above regulatory minimums and robust cash generation. After opening slightly lower by 0.59%, AXA's stock gradually recovered during the session, dipping below 40.30 euros in early trading before climbing to 40.86 euros by midday, thus registering a gain of 0.79%. The trading volumes remained modest with 0.15% of the capital traded. This positive reaction comes after a challenging week for the stock, which saw a decline of 2.04% over seven days, although the annual performance remains strong with a gain of 16.98%.

Technical Analysis and Future Prospects

The price of 40.30 euros positions the stock slightly below its 200-day moving average of 40.38 euros, but remains above its 50-day moving average of 39.24 euros. This setup suggests a consolidation phase following the recent correction. The RSI at 53 indicates a neutral situation, with no overbought or oversold zones, allowing for movement in either direction. The Bollinger Bands, ranging from 38.78 euros in support to 42.10 euros in resistance, frame a relatively wide fluctuation space, reflecting contained volatility of 3.07% over a month. Breaking the resistance threshold at 41.20 euros would constitute a positive technical signal, paving the way towards the 45 euros target set by Deutsche Bank. Conversely, a decline below the support at 38.14 euros could trigger increased selling pressure. The insurer will publish its annual results for 2025 on February 26, a date closely watched by investors as analysts expect the continuation of the group's operational momentum in a context of favorable pricing in property and casualty insurance.