Analyst Suneet Kamath of Jefferies maintained a Buy rating on Equitable Holdings (EQH – Research Report), retaining the price target of $66.00.
Suneet Kamath has given his Buy rating due to a combination of factors that suggest Equitable Holdings is well-positioned for future growth despite some current challenges. Although the company reported lower-than-expected earnings per share due to higher mortality rates and lower fees in certain segments, Kamath sees potential in the company’s strong business flows, particularly in Individual Retirement and Group Retirement, which are expected to support future earnings growth.
Additionally, Equitable Holdings is undertaking strategic capital management initiatives, such as a significant reinsurance deal with RGA, which is anticipated to reduce the company’s exposure to mortality risks significantly. This transaction is expected to free up capital and enhance the company’s risk-based capital ratio, providing a cushion against potential market downturns. Kamath believes that these strategic moves, along with the company’s robust capital return to shareholders, make Equitable Holdings an attractive investment opportunity.
In another report released today, KBW also maintained a Buy rating on the stock with a $62.00 price target.
Based on the recent corporate insider activity of 84 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 EQH in relation to earlier this year.