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Corebridge Financial’s Strategic Moves and Reinsurance Agreement Justify Buy Rating

Corebridge Financial’s Strategic Moves and Reinsurance Agreement Justify Buy Rating

Morgan Stanley analyst Bob Huang maintained a Buy rating on Corebridge Financial, Inc. (CRBGResearch Report) today and set a price target of $40.00.

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Bob Huang has given his Buy rating due to a combination of factors related to Corebridge Financial, Inc.’s recent strategic moves. The company announced a significant reinsurance agreement with Venerable, which involves its Individual Retirement variable annuities business. This transaction is expected to generate substantial pre-tax and post-tax value, which the management plans to utilize for share repurchases and organic growth.
Additionally, despite the anticipated foregone earnings related to the transaction, Corebridge’s management has reaffirmed its financial objectives, including strong long-term EPS growth and a healthy payout ratio. The transaction is also expected to be EPS accretive once the share repurchases are completed. These strategic initiatives and financial projections underpin Bob Huang’s confidence in the company’s future performance, justifying the Buy rating.

In another report released today, KBW also maintained a Buy rating on the stock with a $39.00 price target.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRBG in relation to earlier this year.

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