Update shared on 13 Dec 2025
Fair value Increased 3.62%Analysts have raised their price target on Talanx to EUR 143 from EUR 138, citing expectations of stronger revenue growth, improved profit margins, and a slightly lower future P E multiple. Together, these factors are seen as supporting a higher fair value despite a modestly higher discount rate.
Analyst Commentary
Bullish analysts interpret the higher price target as a reflection of growing confidence in Talanx's ability to sustain above sector revenue growth while defending margins in a more challenging macro environment. The revised valuation framework also factors in a more resilient earnings profile, supporting a premium to historical trading multiples despite a slightly higher discount rate.
Bullish Takeaways
- Bullish analysts highlight that the higher price target implies additional upside from current levels, underpinned by stronger than expected top line growth and disciplined underwriting.
- Positive sentiment is reinforced by expectations that Talanx can continue to expand margins through cost efficiencies and portfolio optimization, supporting double digit earnings growth.
- The valuation argument remains constructive, with analysts viewing the modest compression in the assumed P E multiple as conservative relative to Talanx's improving return on equity profile.
- Analysts also point to Talanx's consistent execution on strategic initiatives as a key catalyst for further re rating, arguing that delivery against guidance could drive additional target upgrades.
What's in the News
- Talanx issued new consolidated earnings guidance for 2026, targeting net income of approximately EUR 2.7 billion and signaling confidence in sustained profit growth (Company guidance).
- The company aims to increase consolidated net income generated in 2024 by 30 percent, to around EUR 2.57 billion by 2027, underscoring its medium term growth ambition (Company guidance).
Valuation Changes
- Fair Value: Raised slightly from €138 to €143, reflecting a modest uplift in the assessed equity value.
- Discount Rate: Increased marginally from 4.78 percent to 4.93 percent, signaling a slightly higher implied risk or cost of capital.
- Revenue Growth: Upgraded meaningfully from around 10.8 percent to approximately 13.3 percent, indicating stronger top line expectations.
- Net Profit Margin: Improved moderately from about 4.75 percent to just over 5.09 percent, pointing to better anticipated profitability.
- Future P/E: Trimmed slightly from 14.1x to about 13.6x, suggesting a more conservative multiple assumption despite higher earnings expectations.
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