On Friday, Deutsche Bank (ETR:DBKGn) analysts upgraded AXA Equitable Holdings Inc (NYSE:NYSE:EQH) from Hold to Buy, setting a new price target of $58, up from the previous $58.
Their assessment highlights EQH's potential for growth and increased value for shareholders, citing the company's dominant position in the growing Registered IndexLinked Annuity (RILA) market. The analysts also pointed to favorable demographic and economic trends, EQH's robust capital situation, and its continuous efforts to optimize operations as key factors supporting the upgrade.
According to the analysts, EQH's valuation is attractive, with the new price target implying a multiple of 8.2 times earnings, or 6.3 times when excluding its stake in AllianceBernstein (NYSE:AB). The upgraded rating and increased price target reflect confidence in EQH's prospects within the financial industry.
The analysts elaborated on the company's financial appeal, noting a "compelling total yield" for EQH. This yield, which includes both buybacks and dividends, is estimated to be around 8.5%. Such a figure is indicative of the potential returns for investors and underpins the rationale for the stock's upgrade to Buy.
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