Aegon NV (0Q0Y – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst David Barma from Bank of America Securities reiterated a Buy rating on the stock and has a €7.00 price target.
David Barma has given his Buy rating due to a combination of factors that highlight Aegon NV’s potential for capital returns and financial optimization. Despite recent disappointing updates, Barma believes that Aegon’s strategic actions over the past five years have strengthened its balance sheet, and current measures are aimed at enhancing the profit and loss prudence. This approach, while lowering earnings forecasts, keeps the investment case strong with significant capital return prospects and opportunities to optimize the company’s footprint.
Barma notes that Aegon’s robust capital and cash positions provide visibility for substantial returns to shareholders, with expectations of nearly 40% of market capitalization being returned through dividends and buybacks between 2025 and 2027. Additionally, the active US market for third-party in-force management presents further opportunities for financial asset optimization, potentially reducing market risks and the cost of equity. These strategic factors underpin Barma’s confidence in Aegon’s future performance, justifying the Buy rating.
In another report released on February 21, J.P. Morgan also maintained a Buy rating on the stock with a €7.60 price target.