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Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Lincoln National (NYSE:LNC) to $37.00 from $35.00 on Tuesday, while maintaining an Equal Weight rating on the insurance company’s stock. The company, currently trading at a P/E ratio of 6.24 and offering a 4.75% dividend yield, has maintained dividend payments for 55 consecutive years.
The price target increase follows what Wells Fargo described as a "strong quarter" for Lincoln National, noting that the company performed well even against high expectations. Recent performance supports this view, with the stock posting an 8.22% return over the past week and a 24.63% gain year-to-date.
Wells Fargo highlighted that Lincoln National is in the "early innings of its turnaround" and has significant opportunity to leverage its relationship with Bain Capital.
The firm indicated that investors should watch several key areas going forward, including group business results and progress on strategic initiatives outlined in conjunction with the Bain deal.
Specific areas of focus mentioned by Wells Fargo include optimization of Lincoln National’s legacy life insurance block, improvements to its free cash flow profile, and the potential resumption of share repurchases.
In other recent news, Lincoln National Corporation reported its second-quarter 2025 earnings results. The company achieved an earnings per share (EPS) of $2.36, which exceeded analysts’ expectations of $1.89 by 24.87%. Despite this positive earnings surprise, Lincoln National’s revenue came in at $4.04 billion, falling short of the anticipated $4.66 billion, resulting in a 13.3% miss. These developments indicate a mixed performance for the quarter, with strong earnings overshadowed by a revenue shortfall. Investors appeared to react positively to the earnings beat, although the revenue miss remains a concern. The company’s financial results reflect its ongoing strategic efforts and market conditions. Analysts and investors will likely continue to monitor Lincoln National’s performance in future quarters.
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