BofA Upgrades Ping An to Buy on Valuation Ahead of Results

Edgen Stock·Mar 25 2026, 02:47

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Key Takeaways

BofA Securities upgraded Ping An of China's A-shares to Buy, citing an attractive valuation despite lowering its near-term earnings forecast. The bank maintained its price targets, signaling confidence in the insurer's medium-term profitability and fundamental improvements.

BofA Securities upgraded Ping An's A-shares from Neutral to Buy, and reaffirmed a Buy rating for its H-shares, pointing to an attractive valuation.
Price targets were maintained at $74 for H-shares and RMB71.7 for A-shares, even as BofA cut its 2025 earnings forecast by 9% to RMB137 billion.
The bank projects a 30% YoY growth in new business value for 2025, underscoring a positive outlook on the company's core operations.

BofA Upgrades A-Shares Despite 9% Earnings Forecast Cut

BofA Securities upgraded Ping An of China's A-shares (601318.SH) to Buy from Neutral, citing an attractive valuation ahead of the company's 2025 annual results announcement on March 26. The bank reaffirmed its Buy rating for the insurer's H-shares (02318.HK). This bullish stance holds even as BofA lowered its 2025 earnings forecast for Ping An by 9% to RMB137 billion, a move attributed to reduced investment return expectations and higher provisions in the fourth quarter of 2025. Despite the earnings adjustment, BofA maintained its price targets at $74 for the H-shares and RMB71.7 for the A-shares, indicating that the current stock price does not reflect the company's underlying value.

Fundamentals Show 30% Growth Outlook, Outweighing Volatility

Analysts at the bank believe short-term investment return fluctuations caused by market conditions do not detract from Ping An's improving medium-term profitability. BofA is maintaining its forecast for a significant 30% year-over-year growth in new business value for 2025, alongside a projected 9% year-over-year increase in operating profit after tax. This confidence in the company's fundamental business improvements underpins the ratings action, suggesting that the core insurance operations remain strong and are poised for solid growth, independent of transient market volatility.