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DJ MARKET TALK: AIA's VoNB Growth Likely To Slow But Well Flagged-Citi
1538 [Dow Jones] STOCK CALL: Citigroup believes AIA's (1299.HK) VoNB (value of new business) growth will likely decelerate from 4Q11 onwards, as a result of a higher base for comparison (new management team and reform measures largely came into place in 4Q10) and the USD's strength in 2H11.
That said, it believes the base effect is well-flagged while the USD's rise is unlikely become a long-term trend.
"We have faith in AIA's execution, and believe it has the ability to continue to deliver stronger-than-expected results (teens, if not 20%, VoNB growth on a normalized basis)," Citi says;
It keeps a Buy call with a HK$30.00 target. AIA is down 1.9% at HK$23.45.
Source: Dow Jones Newswire