Aegon: Oddo still a buyer after CMD

(CercleFinance.com) - At Aegon's CMD held in New York last Thursday, which was dedicated to its US operations (which generate over 60% of the group's OP), Aegon's CEO recapped the group's strategy.


Following this presentation, Oddo confirms its buy rating on the stock, along with its target price of 6.6 euros. Analysts say that early next year Aegon is scheduled to unveil its future financial targets, having already achieved those in its business plan for 2018.

FY 2018 target (vs. 6.5% in 2015). Aegon's American business (Transamerica) has completed its cost reduction program (300 million dollars) two quarters ahead of schedule, Oddo points out.

Analyses show that the group believes that it is now important to invest in its modernisation and in the growth of its activities, with this capex set to increase the group's 2019 costs by 100 million dollars (investments which should tend to fall over the following years).

Despite future investments, Aegon's normalised capital generation in the US is expected to increase to 1.2 billion dollars next year (vs. 1.1 billion dollars this year and 1.0 billion dollars the year before), which will help improve the outlook for the future dividends from the US, Oddo adds.

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