RBC Trims Price Target, Estimates for AXA Amid New FY27-FY29 Targets

06:49 AM EDT, 09/25/2026 (MT Newswires) -- RBC Capital Markets trimmed its price target and earnings forecasts for AXA (CS.PA) after the French insurer unveiled its full-year 2027 to 2029 financial targets. "Having returned margins to best-in-class levels in the prior plan, the focus is to step up growth, driven primarily by better retention, aided by AI, with more cautious expectations for Axa XL. Capital return guidance was unchanged on the previous plan, which was below our expectation, with Axa explicit in new book value growth guidance of its ability to reinvest in organic growth at current returns," according to a Friday note. As part of its strategic plan, AXA aims to achieve a compound annual growth rate of between 7% and 9% in underlying EPS from 2027 to 2029, an underlying return on equity target of 15% to 17%, along with a mid-teens CAGR in book value per share, including cumulative dividends. The company also maintained its total payout ratio of 75% of underlying EPS. "We had perhaps been too ambitious in our expectation for a 10% point step up in the payout ratio in the new plan, given the need to invest to grow the business," analysts added. "Below the line, we assume 50% cost to achieve for the EUR500-700m AI plan, and have also increased our 'regular' restructuring costs." Against this backdrop, the research firm slightly lowered its EPS assumptions for full-year 2026 to 2028 to account for the anticipated smaller share buybacks and cut its revenue forecasts by 1%. RBC also reduced the outperform-rated stock's price target to 52 euros from 54 euros.