In a report released yesterday, Bob Huang from Morgan Stanley maintained a Buy rating on Equitable Holdings, with a price target of $61.00.
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Bob Huang’s rating is based on Equitable Holdings’ strategic move to acquire Stifel Independent Advisors, which aligns with the company’s long-term goal of transitioning towards more capital-efficient business segments like Investment Management and Wealth Management. This acquisition is expected to enhance Equitable’s Wealth Management division by integrating Stifel’s 110 independent advisors, thereby increasing the company’s assets under administration.
Furthermore, the transaction underscores Equitable’s commitment to reallocating resources towards expanding its Wealth Management business, which is anticipated to result in a more balanced business mix over the next decade. If successful, the integration of Stifel’s client assets could lead to a significant uplift in Equitable’s Wealth Management assets, supporting the company’s strategic shift from a predominantly Retirement-focused business to a more diversified portfolio. This strategic direction is a key factor in Bob Huang’s Buy rating for Equitable Holdings.