Metzler Adjusts Allianz Price Target, Forecasts Amid Model Update

07:43 AM EDT, 07/10/2026 (MT Newswires) -- Metzler Capital Markets increased its price target for Allianz (ALV.F) to 454 euros from 420 euros amid a reassessment of the cost of equity estimate applied for the company following a model update. "In the non-life insurance segment, we recognize a chance that Allianz may surpass its target of improving the cost ratio by 30 bps annually in the medium term. We consider an annual improvement by 40 bps per year to be possible in 2027e and 2028e, partly driven by efficiency gains on artificial intelligence (AI)," according to a Friday note. "In the current insurance pricing environment, we deem Allianz's greater focus on retail non-life insurance (c60% of segmental business volume) rather than commercial non-life insurance (c40%) to be an advantage." The research firm edged up its projected EPS for 2026 by 0.8%, while the estimates for 2027 and 2028 were respectively raised by 1% and 1.1%. Its Solvency II ratio forecasts were also upwardly revised, expecting 225% in 2026, 230% in 2027 and 235% in 2028. The buy recommendation on the German insurer's stock was left unchanged.