Ageas' Buy Rating Kept as Berenberg Notes Improved Cash Flow After 18-month Transformation

07:19 AM EDT, 10/14/2026 (MT Newswires) -- Berenberg reiterated its buy rating on Ageas (AGS.BR), with a price target of 95 euros, as analysts noted the company's improved cash flow after its transformation over the past 18 months. "We believe that the group's transformation in the past 18 months means that Ageas now has significantly better cash flow than before, which provides funds not only to ensure that the target of at least 6% pa DPS growth is fully covered, but also that there is ample flexibility for more potential M&A," the research firm said Wednesday, adding that a potential transaction could include an offer for fellow Belgian insurer Ethias. Berenberg added that the potential deal could value Ethias at 4 billion euros, though Ageas could initially opt for a majority stake. Analysts said the Belgium-listed company may also initiate bolt-on reinsurance deals and a "smaller" M&A in the UK upon completion of the Esure integration. "While there are no immediate catalysts for a re-rating, we believe that the stock offers an attractive business model, balanced between growth from its mainly joint venture operations in Asia, and strong cash remittances from its fully owned operations in Belgium and the rest of Europe," analysts added. Their earnings and dividend forecasts for 2026 to 2028 were unchanged.