Wall Street to Weigh In on AXA IPO Next Week

Weeks after becoming the largest U.S. listing of 2018, Axa Equitable Holdings Inc. is trading below the price range that investors were originally asked to pay at its initial public offering. But an incoming round of analyst initiations could create a much louder argument for upside in the American business of French insurance giant Axa SA.

On June 4, a quiet period expires for perhaps the most amicable analysts on Wall Street: those working at banks that underwrote Axa Equitable’s IPO last month. The expiration will probably prompt initiations from lead banks Morgan Stanley, JPMorgan Chase, Barclays and Citigroup, plus other underwriters including Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank and Goldman Sachs. In total, 24 banks served as underwriters on the $3.2 billion deal.

The shares have risen 6.8 percent since the May 9 offering at $20 per share, outpacing financial peers. But the stock remains below the $24-$27 range that banks were asking from IPO investors, a sign that analysts may argue the stock remains undervalued.

Бизнес партнерство и бизнес-идеи

But a more cautious approach from analysts could send shares downward. Ahead of the initiations, short interest represents 5.8 percent of the stock’s float, according to data by S3 Partners.

The striking down of a proposed fiduciary rule created more stability for the variable annuity market, Bloomberg Intelligence analyst Jeffrey Flynn wrote in a May 31 note. But growth in fee income could slow on softer markets and mostly negative flows, he warned.

Copyright 2018 Bloomberg.

Was this article valuable?

Yes
No

Thank you! Please tell us what we can do to improve this article.

Submit
No Thanks

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Submit
No Thanks

Here are more articles you may enjoy.

Coal Industry Tax Cut Threatens Miners’ Benefits Fund as Black Lung Cases Surge

What Banks Got, Did Not Get in Dodd Frank Rewrite Passed by Congress

How Data Privacy Laws Could Hamper Insurance Underwriting

IMF Urges China to Accelerate Opening of Economy to Outside World

Source