Ageas: Credit Suisse maintains sell rating, but raises TP
(CercleFinance.com) - Credit Suisse reinstates its "underperform" rating on ageas shares, despite raising its target price for them to 42.
7 euros (from 38.5 euros), after it reduced its earnings estimates by around 2% for 2022, although raised them by 3% for 2023 and 4% for 2024.
The group reported Q1 earnings of 272 million euros, 18% above the consensus, partly thanks to higher gains on equities and real estate in Belgium and sound underlying combined ratios in non-life.
The broker points out that ageas is trading at 7.6x 2022e EPS, with a total yield of 7.2%, adding that "Whilst, this is a solid level, we see other peers as having similar or higher yields with greater cash flow cover".
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