On Thursday, Berenberg reaffirmed its Buy rating on Ageas (AGS:BB) (OTC: AGESY) stock, maintaining the price target at EUR54.90.
The firm updated its financial forecasts for the insurance company, making adjustments to reflect Ageas's latest guidance and strategic moves.
The revision includes a decrease in the net operating profit estimate for the fiscal year 2024 from EUR1,296 million to EUR1,263 million. This change aligns with Ageas's new range of EUR1.2 billion to EUR1.25 billion.
In addition to the profit estimate adjustments, Berenberg recalibrated its cash estimate for Ageas. The revision accounts for the company's updated guidance of over EUR800 million in cash remittances for fiscal year 2024, with Berenberg estimating EUR805 million.
The update also factors in the recently announced EUR200 million buyback. However, the firm's projections for annual buybacks in 2025 and 2026 remain at EUR100 million each.
Furthermore, Berenberg increased its forecast for Ageas's dividend per share (DPS) in fiscal year 2026 from EUR4.10 to EUR4.25. This adjustment suggests a compound annual growth rate (CAGR) for the DPS from 2023 to 2026 of 9.3%, an increase from the previous estimate of 8%.
Berenberg's revised estimates reflect Ageas's latest financial guidance, taking into account the company's strategic financial planning and capital allocation. The Buy rating and price target suggest confidence in Ageas's stock performance moving forward.
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