Aegon: Credit Suisse downgrades stock

(CercleFinance.com) - Credit Suisse has downgraded its rating on the Aegon stock from "outperform" to "neutral," while maintaining its current target price at 3.
3 euros (current price about 3.1 euros, down 1%), even though it has cut its EPS estimates for the Dutch insurance company.

The broker believes that group management "is taking positive steps to make the company more investable, improve balance sheet strength and reduce unrewarded asset risk in the business," with the broker seeing upside potential through additional divestments.

"However, this will likely be at the expense of near-term capital generation and cash flow, and we believe some of Aegon's peers (e.g. NN Group) offer better risk-reward," it says in the end.


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