Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Raymond James maintained its Strong Buy rating and $72.00 price target on Brighthouse Financial, Inc. (NASDAQ:BHF) following reports of a potential acquisition. The company, currently trading at $58.66 with a market cap of $3.36 billion, shows strong fundamentals with a perfect Piotroski Score of 9 according to InvestingPro data.
Bloomberg reported that Aquarian and co-investors are in discussions to purchase Brighthouse Financial for $65-70 per share, potentially valuing the company’s equity at up to $4 billion. The proposed price range aligns with InvestingPro’s Fair Value analysis, which suggests the stock is currently undervalued. A decision could come as early as next week, though the deal might still fall through.
According to the report, Aquarian is discussing the investment with Mubadala Capital, which is already an Aquarian investor, and Qatar Investment Authority. These partners could provide half or more of the equity capital needed for the transaction.
The Financial Times previously reported that Aquarian is raising more than $3 billion in equity for the deal. The publication also noted that Aquarian is raising new debt, which would be incremental to Brighthouse Financial’s existing capital structure.
Debt financing for the potential acquisition has reportedly been secured from Royal Bank of Canada, Nomura, and Société Générale, according to the Financial Times.
In other recent news, Brighthouse Financial reported its earnings for the second quarter of 2025, which fell short of analysts’ expectations. The company announced an adjusted earnings per share of $3.43, missing the anticipated $4.48. Revenue also came in significantly below projections, with the company reporting $871 million compared to the expected $2.2 billion, marking a revenue surprise of -60.41%. In addition to these financial results, Brighthouse Financial revealed changes in its executive leadership. Myles J. Lambert was appointed as the new Executive Vice President and Chief Operating Officer, effective August 30. Lambert has been with the company since 2017, previously serving as Executive Vice President and Chief Distribution and Marketing Officer. These developments come amidst investor scrutiny following the earnings report.
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