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UBS maintains buy rating on AEGON with a 5.5 euro target post-Q3 results

EditorPollock Mondal
Published 11/17/2023, 09:08 PM
Updated 11/17/2023, 09:08 PM
© Reuters.

NEW YORK - In light of AEGON's third-quarter performance, UBS has reiterated its Buy recommendation for the insurer's stock, maintaining its target price at 5.5 euros. The financial services firm underscored AEGON's stronger-than-expected capital generation and free cash flow as pivotal factors for the positive outlook.

AEGON's quarterly report revealed a robust 16% increase in operating capital generation, reaching 354 million euros. This surge is part of a broader trend of solid financial health within the company, as indicated by the raised capital generation goal for 2023, now set at 1.2 billion euros, up from the previous target of over 1 billion euros.

Analysts at UBS highlighted the company's significant progress in managing its US assets, which contributed to the quarter's favorable outcomes. This strategic advancement aligns with AEGON's overall growth trajectory and reinforces investor confidence in the company's direction.

UBS's sustained Buy rating and target price echo the firm’s confidence in AEGON’s potential for continued success. The financial institution advises both professional and non-professional investors to consider this information in their decision-making processes, though it recommends consulting a professional advisor.

The emphasis on AEGON's positive performance indicators serves as a beacon for potential market activity. Investors may take into account such analyses when contemplating invitations to buy or sell securities.

InvestingPro Insights

As we delve further into the financial health of AEGON, InvestingPro's real-time data and tips provide valuable insights. With a market cap of 9601.85M USD, the company's performance has been a point of interest for many investors. A noteworthy InvestingPro Tip is the company's aggressive share buyback strategy, which often indicates management's confidence in the company's future.

In addition to this, AEGON has consistently raised its dividend for three consecutive years, demonstrating its commitment to returning value to shareholders. Despite revenue declining at an accelerating rate, analysts are optimistic about sales growth in the current year.

InvestingPro's data also shows that AEGON has a P/E ratio of -3.54, which can be interpreted as the company currently being undervalued. AEGON's price to book ratio in the last twelve months as of Q2 2023 is 0.91, which suggests that the market price is lower than the company's book value.

Lastly, AEGON's 1-year price total return as of Y2023.D321 is 13.84%, indicating a positive trend in the company's stock performance.

These insights are part of the InvestingPro subscription, which is now on a special Black Friday sale with a discount of up to 55%. With over 10 additional tips listed in InvestingPro, investors can gain a comprehensive understanding of AEGON's financial health and potential future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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