Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Macquarie has downgraded HDFC Life Insurance (NSE:LIFI) Co Ltd (NSE:HDFCLIFE) from Neutral to Underperform while raising its price target to INR720.00 from INR570.00.
The downgrade comes as Macquarie views the stock’s current valuation as expensive, trading at 22 times FY27F VNB (Value of New Business) multiple for a 16% VNB CAGR (compound annual growth rate) from FY25E to FY28E.
Macquarie cited regulatory concerns as a key factor in its downgrade decision, specifically pointing to upcoming bancassurance regulations that could impact the company’s operations.
Additional regulatory challenges mentioned include Reserve Bank of India (NSE:BOI) rules on product misselling, which could potentially affect the insurer’s business practices and compliance costs.
The research firm also highlighted growth pressures facing HDFC Life due to a strong first-half base, suggesting the company may face challenges in maintaining its growth trajectory in upcoming quarters.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.