Aegon: Oddo no longer a buyer
(CercleFinance.com) - Analysts at Oddo BHF said on Monday that they have downgraded their rating on the Aegon share from "buy" to "neutral" ahead of the the Dutch insurer's quarterly results on Thursday 13 August.
In a research note, the broker believes that the current environment as a whole remains unfavourable for the group due - in particular - to the increase in mortality relating to Covid in the US, the fall in interest rates and the depreciation of the dollar, to which Aegon is particularly exposed.
Oddo also predicts an increase in impairments on investments made in the fixed income markets.
While it is still convinced that the stock remains "inexpensive" and that it offers attractive upside potential over the medium term, analysts believe that other stocks in its coverage scope now offer more attractive upside potential in the near term.
The broker maintains its target price at 3.1 euros.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a research note, the broker believes that the current environment as a whole remains unfavourable for the group due - in particular - to the increase in mortality relating to Covid in the US, the fall in interest rates and the depreciation of the dollar, to which Aegon is particularly exposed.
Oddo also predicts an increase in impairments on investments made in the fixed income markets.
While it is still convinced that the stock remains "inexpensive" and that it offers attractive upside potential over the medium term, analysts believe that other stocks in its coverage scope now offer more attractive upside potential in the near term.
The broker maintains its target price at 3.1 euros.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.