FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
On Monday, BofA Securities analysts upgraded Ageas (EBR:AGES) (AGS:BB) (OTC: AGESY) stock to Buy from Neutral, raising the price target to €64 from €52. The decision follows recent acquisitions in the UK non-life sector, which are expected to significantly alter the company’s profile and investment appeal. The company, currently valued at $12.76 billion, has shown strong momentum with a 37% gain year-to-date and is trading near its 52-week high of $67.18.
The analysts highlighted that Ageas’s increased exposure to non-life insurance, now accounting for 40% compared to the previous 30%, along with enhanced geographic diversification through the UK and reinsurance, are key factors in the upgrade. These changes, combined with improved cash conversion from the newly acquired businesses, are anticipated to gradually enhance the company’s cost of equity. InvestingPro data reveals the company maintains a healthy current ratio of 7.53, indicating strong liquidity to support its expansion strategy.
Ageas shares have performed in line with the sector this year, and based on the new estimates, they are trading at an attractive 2026 estimated price-to-earnings ratio of 6.5x. The current P/E ratio stands at 9.58x, and InvestingPro analysis shows the company has maintained dividend payments for 16 consecutive years, with a current yield of 4.91%. Analysts see potential for further dividend growth, particularly if remittances from China increase once more.
The price target increase to €64, which equates to $76.05 for ADRs, suggests a total return potential of 20%. The analysts believe that the strategic shifts and acquisitions position Ageas for future growth and improved financial performance, supported by robust revenue growth of 13.04% in the last twelve months.
In other recent news, Ageas has seen a change in its stock rating from HSBC. Analyst Steven Haywood downgraded Ageas from a Buy to a Hold, while also raising the price target to €58.00 from €54.00. This adjustment comes after Ageas’ strong share performance, which has outpaced the European insurance sector with a more than 40% increase since the start of 2024. Despite the downgrade, HSBC’s analysis points to Ageas maintaining an 8% annual capital return yield from 2025 to 2027. The company is also projected to achieve a 7% compound annual growth rate in its operating earnings per share and dividends per share from 2024 to 2027. Haywood’s assessment suggests that while Ageas has shown solid performance, the recent price increase limits further valuation growth. The revised outlook includes Ageas’ latest financial results and market insights, with HSBC introducing projections for 2027. This updated stance offers investors a more cautious perspective on Ageas’ future growth potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.