Analyst Richard Xu of Morgan Stanley maintained a Buy rating on AIA Group (AAIGF – Research Report), retaining the price target of HK$91.00.
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Richard Xu has given his Buy rating due to a combination of factors including AIA Group’s strong financial performance and strategic initiatives. The company reported a significant increase in value of new business (VNB) by 18% for FY24, despite a slowdown in the fourth quarter. This growth indicates AIA’s ability to generate new business effectively, particularly in markets like Thailand and Singapore where the performance exceeded expectations.
Additionally, AIA’s operating profit after tax (OPAT) rose by 7%, and the company announced a US$1.6 billion share buyback program, reflecting its commitment to returning value to shareholders. The steady increase in dividends per share (DPS) by 9% further underscores the company’s robust financial health. Despite some metrics falling slightly below expectations, the overall trajectory remains positive, supporting the Buy rating.
According to TipRanks, Xu is a 2-star analyst with an average return of 0.5% and a 53.13% success rate.
In another report released today, DBS also reiterated a Buy rating on the stock with a HK$100.00 price target.