Equitable Holdings stock price target lowered to $63 by Wells Fargo

Investing.com - Wells Fargo (NYSE:WFC) lowered its price target on Equitable Holdings Inc (NYSE:EQH) to $63.00 from $66.00 on Friday, while maintaining an Overweight rating on the stock. With a current market capitalization of $15.2 billion and a P/E ratio of 36.5x, InvestingPro analysis suggests the stock is currently trading above its Fair Value.

The adjustment follows a meeting with Equitable Holdings executives, including CFO Robin Raju, President Nick Lane, Treasurer Peter Tian, and Head of IR Erik Bass, where discussions centered on second-half expectations and 2027 financial targets. The company has demonstrated strong financial health, with InvestingPro data showing an impressive revenue growth of 18.7% and a consistent dividend growth track record.

Wells Fargo noted that Equitable Holdings’ earnings per share is expected to accelerate in the second half of the year, driven by higher equity markets, share repurchases, and the protection solutions deal. According to InvestingPro, management has been aggressively buying back shares, with analysts forecasting EPS of $5.94 for fiscal year 2025. Get access to 7 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

The financial services company maintains its annual EPS compound annual growth rate guidance of 12-15% through 2027, with Wells Fargo’s current projections assuming 12% growth in 2026 and 13% in 2027.

For the individual retirement segment, Equitable Holdings is guiding to $220-225 million of earnings in Q3, assuming 2% average market performance and $0 market value adjustment, with expectations that spread income will grow alongside general account growth.

In other recent news, Equitable Holdings Inc. reported its second-quarter 2025 earnings, showcasing a mixed financial performance. The company exceeded expectations with an adjusted non-GAAP earnings per share (EPS) of $1.41, surpassing the forecasted $1.33. However, Equitable Holdings experienced a significant shortfall in revenue, reporting $2.36 billion against the anticipated $3.23 billion, resulting in a 26.93% miss. Despite the EPS beat, the revenue miss highlights challenges in meeting market expectations. These developments are crucial for investors as they assess the company’s financial health and future prospects. While the earnings report was mixed, it remains a focal point for analysts and stakeholders. The company’s stock performance following the earnings release reflects the market’s reaction to these figures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.