Allianz Priced Very Attractively

We are maintaining our Buy recommendation on Allianz SE - ADR (AZ) before third quarter results on November 10. The recent sharp drop in share price has taken the stock to a very attractive level, and at its current valuation is undemanding as the stock trades at a significant discount to its peers. Our target price is $10.00.

The downfall of other large financial institutions could provide Allianz the opportunity to increase market share. Despite difficult market conditions, management still expects underlying operating profitability in to generate a run rate before Banking of EUR 9-plus billion ($11.2 billion) in 2008 and 2009.

Allianz has over 60 million customers and a presence in more than 70 countries. It is the largest insurer in Germany with a market share of 18% of the property and casualty insurance in that country and is a leader in Europe.

Read the full analyst report on AZ

Read the full analyst report on AZ