BNP Paribas (BNPQY, Financial) and AXA have finalized a Share Purchase Agreement for AXA Investment Managers, following exclusive talks that began on August 1. The agreement is set to close by early July 2025, marking a significant step in BNP Paribas's strategy to enhance its asset management platform. This move aims to position the group as a leading European player in managing long-term savings for insurers and pension funds.
The acquisition will leverage AXA Investment Managers' strong market presence and expertise in private assets, aiming to attract both institutional and retail investors while aligning with BNP Paribas's mission to support economic growth by channeling savings into future-focused projects.
Recently, the European Central Bank (ECB) provided its perspective on the regulatory treatment of acquiring asset management companies. Under this guidance, BNP Paribas anticipates a minor impact on its Common Equity Tier 1 (CET1) ratio, estimated at a decrease of approximately 35 basis points. However, the return on invested capital is expected to exceed 14% in year three and 20% by year four, improving upon initial projections of 18% in the third year.
Consequently, BNP Paribas's overall profitability targets, growth plans, and equity and CET1 trajectories remain stable. Additionally, the group's share buyback program, which received ECB approval earlier this year, will proceed as planned, maintaining its dividend and shareholder return policies.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for BNP Paribas (BNPQY, Financial) is $52.77 with a high estimate of $54.98 and a low estimate of $50.55. The average target implies an upside of 38.02% from the current price of $38.23. More detailed estimate data can be found on the BNP Paribas (BNPQY) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, BNP Paribas's (BNPQY, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BNP Paribas (BNPQY, Financial) in one year is $25.20, suggesting a downside of 34.08% from the current price of $38.23. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BNP Paribas (BNPQY) Summary page.
