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On Monday, Raymond (NSE:RYMD) James confirmed its Market Perform rating on Corebridge Financial Inc . (NYSE:CRBG), maintaining its neutral stance on the insurer’s stock. The firm’s analyst cited Corebridge Financial’s diverse income streams, with 52% of its projected 2023 earnings coming from spread, 27% from fees, and 21% from underwriting. Trading at a P/E ratio of 8.79x with a market capitalization of $18.01 billion, InvestingPro analysis suggests the stock is currently fairly valued. The rating reflects the company’s current valuation, which is consistent with its peers in the diversified U.S. life insurance sector.
The financial services firm also adjusted its earnings per share (EPS) forecasts for Corebridge Financial for the years 2025 through 2027. The new EPS estimates stand at $5.06 for 2025, $5.74 for 2026, and $6.34 for 2027. These figures represent a decrease from the previous projections of $5.49, $6.35, and $7.35, respectively, and are also below the consensus estimates of $5.39 for 2025, $6.22 for 2026, and $7.03 for 2027. InvestingPro data reveals that three analysts have recently revised their earnings downward, with analyst price targets ranging from $34 to $43.
The revisions to the EPS estimates take into account several factors, including the company’s sensitivity to interest rates, anticipated higher deferred acquisition cost (DAC) amortization, and expectations for sustained lower variable investment income (VII) through 2025. Despite these challenges, InvestingPro data shows the company maintains a "GOOD" financial health score, and management has been actively buying back shares. Additionally, Raymond James has updated its first-quarter 2025 EPS estimate for Corebridge Financial to $1.15, down from the prior estimate of $1.27 and below the consensus estimate of $1.25. This lower projection is influenced by the same factors and includes an expectation of increased mortality rates in the first quarter of 2025. For deeper insights into CRBG’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Corebridge Financial has been the subject of multiple analyst upgrades and coverage initiations. Morgan Stanley (NYSE:MS) raised its rating to Overweight, increasing the price target to $43, highlighting the company’s strategic shift towards fee-based earnings in its group insurance line. BMO Capital Markets initiated coverage with an Outperform rating and a $43 target, citing favorable market conditions and Corebridge’s consistent cash flow generation. Deutsche Bank (ETR:DBKGn) upgraded the stock to Buy, setting a $40 target, and emphasized Corebridge’s potential for organic growth in 2025, driven by favorable demographics and interest rates. Barclays (LON:BARC) also upgraded Corebridge to Overweight with a $37 target, noting benefits from high-interest rates and potential accretive reinsurance transactions. These developments reflect a general confidence in Corebridge Financial’s ability to adapt and grow in the current financial environment.
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