Equitable Holdings stock price target lowered to $70 at BMO Capital

Published 13/08/2025, 15:30
Equitable Holdings stock price target lowered to $70 at BMO Capital

Investing.com - BMO Capital has lowered its price target on Equitable Holdings Inc (NYSE:EQH) to $70.00 from $71.00 while maintaining an Outperform rating. The stock, currently trading at $54.53 and near its 52-week high of $56.61, has demonstrated strong momentum with a 44.5% return over the past year. According to InvestingPro analysis, the company appears to be trading above its Fair Value.

The firm reduced its forward EPS run-rate by approximately 4% to $5.84 for 2025 and $7.97 for 2026. The downward revisions primarily reflect lower earnings expectations in the Individual Retirement segment, driven by reduced spread-based earnings as higher-margin RILA business rolls off. InvestingPro data shows that three analysts have recently revised their earnings estimates downward, though the company maintains a GOOD financial health score with liquid assets exceeding short-term obligations.

BMO Capital introduced a 2027 EPS estimate of $9.52, representing approximately 19% year-over-year growth, comprised of about 10% earnings growth and 8% from a lower share count. This projection implies a compound annual growth rate of approximately 14% versus Equitable’s 2022 normalized baseline. The company has shown strong operational momentum, with revenue growing 21.29% over the last twelve months and maintaining a solid dividend yield of 1.97%. For deeper insights into Equitable Holdings’ growth prospects and valuation metrics, access the comprehensive Pro Research Report available on InvestingPro.

The firm noted that Equitable is currently running slightly below its 12-15% CAGR target against that baseline but estimates faster growth ahead due to reduced mortality headwinds from its divested Life business and excess capital deployment from that transaction.

The new $70 price target represents approximately 2.9 times adjusted book value excluding accumulated other comprehensive income, or about 1.7 times when reflecting AB at fair value, and approximately 8.8 times BMO’s 2026 EPS estimate.

In other recent news, Equitable Holdings reported its second-quarter 2025 earnings, showing a mixed performance. The company achieved an adjusted non-GAAP earnings per share (EPS) of $1.41, exceeding the forecast of $1.33. However, its revenue of $2.36 billion was significantly below the expected $3.23 billion. This revenue miss marked a 26.93% surprise shortfall. Following these results, Evercore ISI adjusted its price target for Equitable Holdings to $63.00, down from $64.00, while maintaining an Outperform rating. Similarly, Wells Fargo lowered its price target to $63.00 from $66.00, retaining an Overweight rating. The adjustments by these firms were influenced by discussions with Equitable Holdings’ executives regarding second-half expectations and future financial targets. These developments are part of the company’s recent updates.

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