NN Group: Credit Suisse raises to 'outperform'
(CercleFinance.com) - Credit Suisse raised NN Group to "outperform" from "neutral" on Tuesday, saying the Dutch insurer offers an "impressive" capital return.
The brokerage said NN's total capital return yield of about 11% is well above the sector average of 7%, powered by strong free cash flow.
"We expect this FCF to grow in the next few years as it continues to release capital from legacy life insurance books in the Netherlands, supplemented by re-risking, improved non-life profitability and growth in other areas of the business," the Credit Suisse analysts wrote in a note.
Credit Suisse - which noted that NN Group is now its preferred Benelux stock in insurance - also raised its price target on the share, from 28 euros to 38 euros.
Shares of the company were still down 0.2% after these comments.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The brokerage said NN's total capital return yield of about 11% is well above the sector average of 7%, powered by strong free cash flow.
"We expect this FCF to grow in the next few years as it continues to release capital from legacy life insurance books in the Netherlands, supplemented by re-risking, improved non-life profitability and growth in other areas of the business," the Credit Suisse analysts wrote in a note.
Credit Suisse - which noted that NN Group is now its preferred Benelux stock in insurance - also raised its price target on the share, from 28 euros to 38 euros.
Shares of the company were still down 0.2% after these comments.
Copyright (c) 2020 CercleFinance.com. All rights reserved.