Generali
Note: This is a daily stock update and the information stands true as of 21/01/25, 09:00 CET.
Company Update:
Expert Opinion:
This deal was expected but having it go through is good news. The company will hold a call this afternoon at 4pm. We expect appositive reaction today. Generali had a very strong run and we see more limited potential going forward with only 6.5% upside. While valuation remains limited (PE25 at 11x and PE 26 at 10.6x), I would start taking some profits on the name following the very strong run.
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Company Update:
Generali and BPCE (Natixis) reached an agreement to join forces in Asset management with a 50/50 JV.
The new entity will have $1.9trn in AUM and will enter the top 10 worldwide, only second to Amundi in Europe.
We see this deal as beneficial for both companies as:
1- It enhances profitability as AM is to a large extent a fixed cost business and the bigger the better.
2- It increases the competitiveness s in a context of shrinking fee margins and growing competition especially with large US asset managers.
3- It broadens the product offering which eases access to distribution networks and generate commercial synergies.
This deal was expected but having it go through is good news. The company will hold a call this afternoon at 4pm. We expect appositive reaction today. Generali had a very strong run and we see more limited potential going forward with only 6.5% upside. While valuation remains limited (PE25 at 11x and PE 26 at 10.6x), I would start taking some profits on the name following the very strong run.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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