Corebridge initiated with an Outperform at BMO Capital

BMO Capital initiated coverage of Corebridge (CRBG) with an Outperform rating and $43 price target The current conditions in capital markets and interest rate levels are supportive of growth within Corebridge’s spread-based lines of business, including fixed annuities and pension risk transfer, and spread pressure headwinds are already priced into expectations, the analyst tells investors in a research note. Corebridge is a prime candidate to free up incremental capital for share buybacks given increasing usage of a Bermuda entity, and the discounted valuation of its annuities business relative to recent private market sale multiples, BMO says.