In mid-August, the Belgian insurer Ageas . reports
its results for the first half of 2022. According to the Berenberg stock exchange, Ageas will launch a new share buy-back program thanks to its high cash flow and the absence of a major acquisition.
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The share buy-back program and the solid dividend together provide a very attractive return.
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The analysts of Berenberg are counting on a buyback program amounting to 150 million euros. ‘That is the equivalent of a cash payment of 1.9 percent. Together with our expectation of a gross dividend of 6.6 percent, this makes for a very attractive return.’
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Berenberg’s analysts believe that the last quarter has been slightly more difficult for Ageas than the first quarter of 2022. ‘The second quarter was marked by some headwinds such as hyperinflation in Turkey, claims due to extreme weather conditions and lower interest rates in China. We expect a net profit of 172 million euros for the second quarter of 2022.’
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Ageas is trading at 7.3 times expected 2023 profit, below the five-year average of 9.7.
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“But the goal of 1 billion euros profit in 2022 is still realistic,” it sounds. Moreover, the analysts call Ageas attractively valued. Ageas is trading at 7.3 times expected 2023 earnings, below the five-year average of 9.7. The stock exchange has a price target of 55.4 euros and logically gives a buy recommendation.
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Ageas gains 1.8 percent to 41.28 euros.
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