On Thursday, Evercore ISI made an adjustment to the financial outlook of Lincoln National Corporation (NYSE:LNC), modifying the price target to $33.00 from the previous $32.00. The firm maintained its In Line rating for the insurance company's stock.
The adjustment follows a review of Lincoln National's first-quarter performance and its potential future earnings. The analyst noted a downward revision of the first-quarter 2024 earnings estimate, from $1.35 to $1.02 per share. This change primarily accounts for an anticipated severance expense of approximately $40 million.
Looking ahead to the second quarter of 2024, the analyst expects an upward trajectory in earnings estimates by around 3%. This anticipation is based on the robust performance of equity markets in the first quarter, which is likely to positively influence fee income, particularly within the annuity segment. The S&P 500's strong showing, contrasted with more subdued results from other indices, is a key factor in this outlook.
The increase in the price target to $33.00 aligns with the newly adjusted expectations for 2025. The analyst attributes this change to the favorable impact that the equity market's first-quarter performance could have on Lincoln National's fee income, emphasizing the significance of the annuity segment's robust results linked to the S&P 500's performance.
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