Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Evercore ISI has reduced its price target on Equitable Holdings Inc (NYSE:EQH) to $63.00 from $64.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, the company currently trades at a P/E ratio of 37.4x and shows strong financial health with a "GOOD" overall rating.
The adjustment follows Equitable Holdings’ second-quarter earnings report and subsequent earnings call, prompting Evercore ISI to slightly lower its second-half 2025 estimates and reduce 2026 estimates by approximately 2%.
Despite higher earnings run rates in the Wealth segment and AB offsetting a miss in the Individual Retirement (IR) segment, the firm now projects slower growth in IR into 2026 as higher-margined older business rolls off, resulting in modest margin compression.
Evercore ISI notes that this higher-margined older block represents approximately 15% of in-force business, suggesting the headwind should not persist much longer.
The firm also cited Equitable’s more conservative capital deployment plan for the unaccounted excess capital from the RGA deal—50% for debt reduction and 50% for additional share repurchases—as a factor shaving a modest amount from 2026 earnings per share estimates.
In other recent news, Equitable Holdings Inc. reported its second-quarter 2025 earnings, which presented a mixed picture for investors. The company posted an adjusted non-GAAP earnings per share (EPS) of $1.41, exceeding analyst expectations of $1.33. However, its revenue of $2.36 billion significantly missed the projected $3.23 billion, resulting in a 26.93% surprise miss. In related developments, Wells Fargo (NYSE:WFC) adjusted its price target for Equitable Holdings from $66.00 to $63.00, while maintaining an Overweight rating on the stock. This adjustment came after a meeting with Equitable Holdings executives, where discussions focused on future financial targets and expectations for the second half of the year. These recent developments provide investors with insights into the company’s performance and future projections.
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