Aegon NV (AEG) PT Raised to $7.50 at CFRA

CFRA analyst Jeff Lye raised the price target on Aegon NV (NYSE: AEG) to $7.50 (from $6.50) while maintaining a Buy rating.

The analyst comments "We raise our target price for Aegon (AGN) to USD7.50 (USD6.50), based on 0.8x comprehensive equity, which also implies a 2025 P/E of 10x, broadly in line with its peers. Q1 2024 operating capital generation (OCG) of EUR256 million (-13% Y/Y) was impacted by unfavorable mortality claims of USD33 million and reduced capital release, but was mitigated by lower business strain in the U.K. and International business. The sales force of World Financial Group grew to 75,652 licensed agents (+13% Y/Y), reflecting the increasing strength of AGN's distribution network in the U.S. Cash capital at holding remains strong at EUR2.0 billion in Q1 2024, which enabled AGN to announce a new EUR200 million share buyback. We expect the shifting of capital allocation in the U.S. from Financial Assets to Strategic Assets to support earnings and OCG, therefore achieving its 2024 targets, including i) OCG of ~EUR1.1 billion and ii) FCF of >EUR700 million. We keep our EPS forecasts of EUR0.65 for 2024 and EUR0.72 for 2025."

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