Allianz's Three-Year Plan: A Calm Reaction from the Capital Market
By Mike F.
Transfer in progress.
In a year when the German economy's hum is faint, and job cuts are in the air, Allianz's Capital Market Day was nothing short of reassuring. Despite not delivering any blockbuster announcements, the company's three-year targets for the 2024-2027 period aren't causing waves among investors, largely aligning with their pre-existing expectations. The stock market's muted response on Tuesday is a testament to this.
But what exactly are these targets? Allianz has set its sights on significant earnings per share (EPS) growth, with an average annual increase of 7 to 9%[2]. Furthermore, they aim for a return on equity (ROE) of 17% or more. To share the wealth, the company plans to distribute 75% of its earnings, with 60% going as dividends and 15% reserved for share buybacks[2].
The investment community has generally been lenient towards Allianz's targets, thanks to its robust track record. The company has a history of meeting or surpassing its earnings estimates[3], which gives credence to its long-term projections. Recently, Allianz reported an all-time high operating profit, fortifying investor confidence in its ability to achieve its long-term objectives[1]. However, specific market reactions to this three-year plan are not exhaustively detailed in the available information.
Allianz aims for substantial earnings per share (EPS) growth, targeting an average annual increase of 7 to 9%, which aligns with the expectations of investing community, given their robust track record. The company also plans a return on equity (ROE) of 17% or more, with 75% of their earnings intended to be distributed, including 60% as dividends and 15% for share buybacks.
