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Investing.com - BofA Securities upgraded NN Group NV (AS:NN) (OTC:NNGPF) from Neutral to Buy on Thursday, while raising its price target to EUR64.00 from EUR57.00, representing a 12% increase.
The upgrade comes as BofA forecasts NN Group’s operating capital generation to reach €976 million in the first half of 2025, a 2% year-over-year increase, driven primarily by improved new business performance across segments.
BofA expects the Dutch insurer’s solvency ratio to reach 200% by the first half of 2025, a 5 percentage point improvement from the April update, with further growth to approximately 210% projected for next year.
The firm also anticipates strong cash position for NN Group, with over €1.7 billion expected in the first half of 2025 and €2 billion projected for the following year, potentially enabling the company to increase its share buyback program to €400 million next year.
BofA cited attractive valuation, promising capital return outlook of approximately 10% total yield annually, and improving new business as key factors behind the rating upgrade and price target increase to €64 for Amsterdam-listed shares and $37.51 for the American Depositary Receipt.
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