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On Wednesday, JPMorgan analysts downgraded ASR Nederland NV (AS:ASRNL:NA) (OTC:ASRRF) from Overweight to Neutral. The decision was accompanied by a slight increase in the price target to €60.00 from €59.00.
The analysts noted that ASR Nederland’s recent acquisition of Aegon (NYSE:AEG) Netherlands presents an attractive opportunity for earnings per share (EPS) growth and capital return potential. They emphasized the potential for strong earnings growth due to synergies from the deal and the expected improvement in the company’s Solvency II capital position.
Despite these favorable prospects, the analysts expressed concerns over the stock’s current trading valuation. ASR Nederland is trading at approximately 9.5 times its estimated 2026 earnings per share, which is higher than the average multiple of 8 times for its Benelux peers.
The report also mentioned the introduction of a partial internal model for Solvency II, planned for 2025, as a factor in the company’s future outlook. However, given the current valuation, the analysts opted for a Neutral rating.
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