BofA upgrades NN to 'buy' on improving operational outlook

NN

10/07/2025 11:01

** BofA Securities upgrades Dutch insurer NN Group NN.AS to "buy" from "neutral", expecting improved earnings in mid-term

** Says, "The operational outlook is good, we are ahead of consensus buyback expectations, valuation remains attractive, and a steeper yield curve in Europe is supportive"

** BofA raises its 2027 operating capital generation (OCG) forecasts by 5%, while expecting double-digit earnings growth in Europe and a re-start of NN's Japan business after a standstill

** Brokerage highlights stock's attractive valuation of 2026 PE of 7x and total yield of around 10%

** It also raises its PT by 12% to EUR 64 vs stock's current trading price of EUR 57.18

** But BofA lowers its solvency forecasts by 3-5 percentage points due to less-than-expected favourable market developments

 (Reporting by Anna Peverieri)

 ((Anna.peverieri@thomsonreuters.com))