HSBC raises Ageas stock target, downgrades to hold

Published 26/03/2025, 08:10
HSBC raises Ageas stock target, downgrades to hold

On Wednesday, HSBC analyst Steven Haywood adjusted the firm’s stance on Ageas (EBR:AGES) stock, downgrading the rating from Buy to Hold while increasing the price target to €58.00 from the previous €54.00. The revision follows Ageas’ significant share performance, with the stock currently trading at $61.12 and boasting a market capitalization of $11.12 billion. According to InvestingPro data, the stock has delivered a 41.27% return over the past year, surpassing the European insurance sector’s average.

Haywood notes that Ageas continues to present an appealing potential for total capital return yields, averaging 8% per annum from 2025 to 2027. The company, which InvestingPro data shows has maintained dividend payments for 15 consecutive years, currently offers a 3.62% dividend yield. The company is expected to maintain a compound annual growth rate (CAGR) of 7% in its operating earnings per share (EPS) and dividends per share (DPS) throughout 2024 to 2027. Despite these positive indicators, the analyst suggests that the recent price surge has left little room for further appreciation in Ageas’ valuation.

The updated outlook by HSBC incorporates Ageas’ latest financial results, insights from management, and recent market movements. Additionally, HSBC has introduced its projections for the year 2027 into their evaluation.

The revised price target reflects a modest increase yet signifies a more conservative outlook on the stock’s future growth potential. Haywood’s commentary indicates a belief in the company’s solid performance but points to the possibility of finding more lucrative investment opportunities within the broader European insurance sector.

Investors may consider the new rating and price target as they assess Ageas’ position in the market, noting the stock’s P/E ratio of 9.79x and its current trading near 52-week highs. For deeper insights into Ageas’s valuation and 10+ additional exclusive ProTips, visit InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.