JPMorgan reiterates ‘overweight’ on Aegon, double-upgrades Standard Life.
JPMorgan reiterated its ‘overweight’ stance on Aegon on Friday and double-upgraded Standard Life as it said the sale of Aegon UK to Standard Life is highly likely to receive regulatory approval, which would be "very positive for both".
Source: Sharecast
JPM said the deal eliminates its previous concerns about Standard Life’s balance sheet, is accretive with the potential to beat consensus, with further upside from SDLF’s track-record of exceeding acquisition synergy guidance.
It said Aegon had sold the business for a higher price than the bank expected, may benefit from future synergies as a circa 15% shareholder in Standard Life, and has a clearer sum-of-the-parts, with attractive valuation upside potential.
JPM upgraded Standard Life to ‘overweight’ from ‘underweight’ and hiked the price target to 950p from 620p. The bank lifted its price target on Aegon to €9.45 from €8.40.
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