David Barma, an analyst from Bank of America Securities, maintained the Buy rating on Aegon NV (0Q0Y – Research Report). The associated price target was lowered to €6.50.
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David Barma has given his Buy rating due to a combination of factors including Aegon’s ability to adjust its operating capital generation (OCG) despite recent challenges. Although the company reported an OCG of €267 million, which was below consensus expectations, adjustments for one-time adverse events such as higher mortality rates in the US suggest a more favorable OCG of €320 million. This adjustment aligns with management’s reiterated target of €1.2 billion for the fiscal year, providing reassurance about the company’s financial health.
Additionally, Aegon’s announcement of a new €200 million share buyback program, while below some forecasts, is expected to meet market expectations and suggests a commitment to returning capital to shareholders. Despite a slight miss in the risk-based capital ratio, the transition to the Bermuda Monetary Authority framework is anticipated to stabilize the capital ratio at the group level. These factors, combined with a positive shift in Transamerica’s sensitivity to equity markets, support the Buy rating as they indicate potential for future growth and stability.
According to TipRanks, Barma is ranked #2966 out of 9519 analysts.
In another report released on May 7, Exane BNP Paribas also upgraded the stock to a Buy with a €6.40 price target.