Nomura Securities Upgrades Aegon NV (AEG) to Buy; Improving U.S. Credit Outlook
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Price: $9.45 +0.75%
Rating Summary:
9 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities upgraded Aegon NV (NYSE: AEG) from Neutral to Buy, price target raised from EUR4.5 to EUR6.00.
Analyst, Nick Holmes, said, "Upgrade the stock, raise our 2012 earnings forecast by 7% and increase our PT to EUR 6.0 (38% upside) driven by lower expected credit losses, an improving outlook for spread-based earnings as well as the improving US economic outlook (72% of earnings from US in 2011). We think that the improving US economic outlook could lead to a significant reduction in credit losses, and could fall by as much as 55% this year, adding 12% to earnings. Rising US interest rates are also positive; although the effect is likely to be more muted in early years. We estimate that a 100bp increase is worth 1.5% of earnings in 2012 with a compounded effect in subsequent years."
For an analyst ratings summary and ratings history on Aegon NV click here. For more ratings news on Aegon NV click here.
Shares of Aegon NV closed at $5.74 yesterday.
Analyst, Nick Holmes, said, "Upgrade the stock, raise our 2012 earnings forecast by 7% and increase our PT to EUR 6.0 (38% upside) driven by lower expected credit losses, an improving outlook for spread-based earnings as well as the improving US economic outlook (72% of earnings from US in 2011). We think that the improving US economic outlook could lead to a significant reduction in credit losses, and could fall by as much as 55% this year, adding 12% to earnings. Rising US interest rates are also positive; although the effect is likely to be more muted in early years. We estimate that a 100bp increase is worth 1.5% of earnings in 2012 with a compounded effect in subsequent years."
For an analyst ratings summary and ratings history on Aegon NV click here. For more ratings news on Aegon NV click here.
Shares of Aegon NV closed at $5.74 yesterday.
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