Analyst David Barma of Bank of America Securities reiterated a Buy rating on Aegon NV, retaining the price target of €7.30.
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David Barma has given his Buy rating due to a combination of factors including Aegon NV’s recent financial performance and future prospects. The company reported a headline operating capital generation of €340 million, which exceeded market expectations by 6%, although adjusted figures were slightly below the usual run-rate. Despite this, Aegon’s management remains confident in achieving its annual target of €1.2 billion.
Additionally, Aegon’s holding cash position, while slightly below consensus, is still significantly above the company’s long-term ambition. The RBC ratio was reported at 425%, which was better than anticipated due to favorable market conditions. Although there are some challenges, such as weaker new business indicators and increased sensitivity to equity markets, these are expected to be addressed in the upcoming Capital Markets Day, providing further clarity on capital management and returns.