Able to allianceshare (WKN: 840400) increase to 265 euros? At least that is what the current price targets suggest. Analysts never agree on the valuation of a stock. But many now see the DAX insurance company as a cheap dividend stock that can at least increase in value by double digits.
But what does a price target of 265 euros mean for the Allianz share? Good question. Among other things, this would involve a dividend yield of 4.07% and a possible price increase of 51.4%, starting from 175 euros in the meantime. But so much more: maybe a little more normality when we look at this DAX stock.
Alliance share: 265 euros ?!
If the Allianz share rises to 265 euros, it would mean one thing in terms of the share price: the highest level in 52 weeks of 232 euros would be exceeded. But why not? After all, the share certificates are relatively moderately valued.
For example, at current share prices, there is a dividend of more than 6%. Adjusted without special effects, the price-earnings ratio would be less than 10. But even with this effect, we are currently at a value of around 11. This is quite favorable and shows that there is value potential in this DAX stock.
But if the stock price could rise to $ 265, the dividend yield would be 4.07%. Honestly, that would be a level that in retrospect would be pretty average for the Allianz stock. A price-to-earnings ratio of around 14 could also be more appropriate for the valuation (adjusted). Fundamentally, therefore, for me, there is a possibility that the DAX insurance company will sooner or later go in such a valuation direction. Especially since there should be earnings and dividend growth over the next few years. Stock buybacks are also currently on the agenda.
Not out of the blue!
Investors currently do not see that the Allianz share can rise to 265 euros. A price increase of 51% or a generally better mood is almost utopian. But in the medium to long term, the target price does not seem too wrong. Or at least basically sound.
Maybe the mood should change. It may also be necessary to confirm in the coming quarters that medium-term forecasts are still sound. If it succeeds, it is more likely to be a matter of time. Overall, the following applies: After these difficult times, there should be better days in the stock market at some point. Then the Allianz stock can be a value candidate with a strong dividend that is fully ripe for a revaluation.
Overall, looking at the classic measurements, a dividend of 4% and a price-to-earnings ratio of 14 would be a more normal valuation target for me. But of course you can also argue about that.
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Vincent owns shares in Allianz. The Motley Fool does not own any of the listed shares.