Bank of America Securities analyst David Barma reiterated a Buy rating on Aegon NV today and set a price target of €7.20.
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David Barma has given his Buy rating due to a combination of factors, starting with Aegon’s compelling valuation, which currently offers a high total yield at roughly 9–10% alongside shares trading at about seven times earnings after expectations have already been revised downward. He also highlights that the planned divestment of the U.K. business and the ASR stake, while broadly neutral for free cash flow per share, should streamline the group, enable sizable share buybacks, and be accretive to earnings, particularly in the case of ASR, thereby supporting upside for the stock.
Barma further argues that as Aegon becomes increasingly U.S.-focused through Transamerica, its cash remittances should improve once restructuring costs fade, potentially turning it into one of the more attractively valued U.S. names on a cash-yield basis. In his view, the market underestimates the quality of Transamerica’s franchise, which has a stronger mix of fee income and underwriting profits with less dependence on capital-intensive life insurance, and greater transparency plus additional back-book optimization could justify a higher valuation multiple than peers, supporting his Buy recommendation even after a modest cut to earnings forecasts and price objective.
According to TipRanks, Barma is ranked #3958 out of 12075 analysts.
In another report released on March 5, Citi also maintained a Buy rating on the stock with a €8.02 price target.