RBC Capital Markets initiated coverage of Allianz SE with a "sector perform" rating and a €405 price target, implying ~10% upside from recent levels. The firm highlights a 15% total return potential, combining a 4.7% dividend yield with capital appreciation. Analyst Ben Cohen noted Allianz trades at 11.8x forward earnings, a 5% premium to peers, justified by its historical performance but offering limited room for further expansion.

Allianz’s valuation reflects a shift from growth acceleration to profit maximization. Structural tailwinds—rising bond yields, P&C pricing strength, and improved capital efficiency—boosted its multiple from 10x to 12x earnings between 2022 and 2024. However, these drivers are now stabilizing. P&C pricing is easing in key markets, and competition in life insurance and asset management has intensified, with Athene and Global Atlantic gaining market share.

RBC projects Allianz’s core diluted EPS to reach €32.59 by 2027, up from €28.93 in 2025, with operating profit forecasts of €17.3bn, €18.3bn, and €18.9bn respectively. Dividends are expected to rise to €18.75 per share by 2026. The analyst cautioned that sustaining 9% operating profit growth in 2026 would be challenging for future expectations.

A sum-of-the-parts valuation assigns P&C a €224/share value (12.6x 2027 earnings), Life & Health €126 (11.2x), and Asset Management €98 (13.5x), totaling €405. AI poses dual risks and opportunities: disrupting distribution channels but offering cost savings in claims and customer acquisition. RBC emphasizes the stock as a core holding but advises caution until the H2 2027 Capital Markets Day delivers clearer guidance.