On Tuesday, Swiss Life Holding (SLHN:SW) (OTC: SZLMY) stock received an Outperform rating from BNP Paribas (OTC:BNPQY) Exane, with a new price target set at CHF785.00. The initiation of coverage by the firm was based on the company's strong performance over the past ten years, particularly noting its transition to Asset and Wealth management which has bolstered its cash return growth.
BNP Paribas Exane highlighted Swiss Life's growing fee result as a key factor in its success, indicating that while the growth pace is expected to slow, the company's free cash flow (FCF) yield is seen as more attractive. The analyst believes Swiss Life stands as a more reliable deliverer of growth compared to its peers.
The analyst's statement emphasized the company's consistent performance, saying, "Swiss Life has been an excellent investment over the last decade." The transition to focusing more on Asset and Wealth management has been a significant driver of growth for Swiss Life, supporting a notable increase in cash returns to shareholders.
Despite the expectation for slower growth, BNP Paribas Exane maintains a positive outlook on Swiss Life's future prospects. The firm sees the company as having better long-term growth opportunities than its competitors in the industry.
The Outperform rating and CHF785.00 price target reflect confidence in Swiss Life's continued ability to generate value for investors. BNP Paribas Exane's coverage initiation points to Swiss Life's strong historical performance and favorable position for future growth, despite an anticipated deceleration in growth velocity.
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