Citi downgrades ASR Nederland stock rating to neutral on valuation

Published 24/06/2025, 17:46
Citi downgrades ASR Nederland stock rating to neutral on valuation

Investing.com - Citi downgraded ASR Nederland NV (AS:ASRNL) (OTC:ASRRF) from buy to neutral on Tuesday, while raising its price target to EUR55.31 from EUR49.81, representing an 11% increase.

The rating change follows ASR Nederland’s fiscal year results, which prompted Citi to update its model and increase its 2025/26 earnings per share estimates by 16-18%, while also introducing 2027 forecasts.

Citi cited better clarity following the Aegon (NYSE:AEG) NL acquisition and improved property and casualty combined ratio as key drivers for the earnings estimate increases, noting its forecasts are broadly in-line with consensus for operating profit but approximately 5% higher at the EPS level.

The price target increase reflects Citi’s higher free cash flow forecasts and a lower cost of capital, though with only 7% total expected total return, the firm believes the shares are now reasonably valued on free cash flow and dividend yield metrics.

Citi indicated that further upside for ASR Nederland will take time to materialize, pointing to ongoing Dutch pension reforms and remaining integration benefits as factors that will affect the company’s future performance.

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