FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
On Monday, Truist Securities updated its analysis of Equitable Holdings Inc (NYSE:EQH), increasing the price target to $60 from the previous $52, while keeping a Buy rating on the stock. The adjustment reflects expectations for persistent growth in earnings per share (EPS) and cash flow. Although Truist Securities has slightly reduced its 2025 EPS forecast for Equitable Holdings to $7.00 from $7.15, this revision is due to a smaller than anticipated impact from share repurchases, as a result of the stock’s higher price, and continued challenges within the Protection Solutions sector. According to InvestingPro data, the company has been aggressively buying back shares while maintaining a solid P/E ratio of 14.01, suggesting potential value opportunity. The stock is currently trading near its 52-week high of $54.82, with InvestingPro’s Fair Value analysis indicating the stock remains slightly undervalued.
Looking ahead, Truist Securities has initiated a 2026 EPS estimate of $8.00 for the company. The new $60 price target is based on the current market valuation of Equitable Holdings’ ownership in AllianceBernstein (NYSE:AB, Not Rated) at $6.7 billion. The valuation also takes into account the rest of the company, which is priced at 6.0 times its non-AB earnings in 2026, estimated at $1.9 billion. According to the firm, this valuation places Equitable Holdings at the lower end of the Life group’s multiple range. InvestingPro analysis reveals the company has demonstrated strong financial performance with a 62.81% return over the past year and has consistently raised its dividend for seven consecutive years, suggesting robust operational execution. For deeper insights into Equitable Holdings’ valuation metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The comprehensive valuation of $18.0 billion, divided by an estimated 300 million shares, arrives at the new target price of $60 per share. This target represents Truist Securities’ confidence in the company’s ability to maintain a trajectory of earnings growth, despite some adjustments to the near-term EPS estimates.
Equitable Holdings’ stock price adjustment and the revised price target come amidst the firm’s strategic moves and market performance, which analysts at Truist Securities believe will support sustained earnings and cash flow growth over the coming years. The company’s financial outlook, as interpreted by Truist Securities, suggests a positive trajectory for shareholders, with the stock price target reflecting these expectations.
In other recent news, Equitable Holdings has reported its Q4 results, revealing a mixed financial picture. The company’s earnings for the quarter met analyst expectations with an adjusted earnings per share of $1.65. However, revenue fell short of estimates, coming in at $3.62 billion against the anticipated $3.89 billion. Equitable Holdings’ total assets under management and administration saw a year-over-year increase of 10%, reaching $1.02 trillion as of December 31, 2024. The company also reported record full-year net inflows in its Retirement businesses and Wealth Management sectors. Looking ahead, Equitable Holdings expects its 2025 non-GAAP operating earnings per share growth to align with its 12-15% target, projecting cash generation to increase to $1.6-1.7 billion. These are part of the recent developments shaping the company’s financial trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.