On Wednesday, TD Cowen began covering Corebridge Financial (NYSE:CRBG) with a positive outlook, assigning a Buy rating and setting a price target of $35. The investment firm's analysis is rooted in a detailed sum-of-the-parts evaluation, which involves applying price-to-earnings (P/E) multiples to the projected earnings of the company's product lines for the year 2025. This approach also takes into account adjustments for excess capital, liability exposures, and investments.
The price target set by TD Cowen suggests a blended P/E multiple of 6.4 times the anticipated earnings per share (EPS) for 2025. This valuation reflects the firm's expectations of Corebridge Financial's financial performance over the next couple of years.
Corebridge Financial's current rating and price target are the result of a methodical approach by TD Cowen, focusing on the various components of the company's business. The firm's analysis indicates a belief in the potential growth and profitability of Corebridge Financial, as seen through the projected earnings and the application of industry-standard multiples.
The initiation of coverage and the optimism surrounding Corebridge Financial's prospects are likely to be of interest to investors and market watchers. The company's stock performance will be observed closely in the coming months to see if it aligns with TD Cowen's expectations.
In other recent news, Corebridge Financial has been active in capital management and strategic positioning. The company issued $750 million in junior subordinated notes, with a portion of the proceeds used to repay a $250 million loan managed by JPMorgan Chase (NYSE:JPM) Bank. This transaction was part of an underwriting agreement with BNP Paribas (OTC:BNPQY) Securities Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC.
Corebridge Financial also reported a 9% year-over-year increase in operating earnings per share in the second quarter of 2024, with premiums and deposits seeing a significant rise of 17% from the previous year, reaching a total of $11.7 billion. In addition, the company entered into a share repurchase agreement with American International Group (NYSE:AIG), planning to buy back shares for an aggregate purchase price of around $200 million.
The company has been the subject of multiple analyst notes. Barclays initiated coverage on Corebridge Financial, setting a price target of $33 and assigning an Equalweight rating, while Deutsche Bank revised its price target for Corebridge to $33, maintaining a Hold rating. These ratings were influenced by the company's second-quarter results and strategic positioning.
Corebridge Financial also expanded its Board of Directors with the appointment of Edward Bousa, a seasoned investment professional with over 40 years in the industry. Bousa's expertise in investment management and corporate strategy is expected to be a valuable addition to Corebridge, which manages and administers over $390 billion in assets.
InvestingPro Insights
TD Cowen's optimistic outlook on Corebridge Financial (NYSE:CRBG) aligns with several key metrics and insights from InvestingPro. The company's current P/E ratio of 8.28 suggests that it may be undervalued compared to TD Cowen's projected 2025 P/E multiple of 6.4, potentially supporting the Buy rating.
InvestingPro data reveals that Corebridge Financial boasts a significant dividend yield of 7.05%, with a remarkable dividend growth of 126.09% over the last twelve months. This aligns with an InvestingPro Tip indicating that the company "pays a significant dividend to shareholders," which could be attractive to income-focused investors.
Additionally, Corebridge Financial has demonstrated strong performance, with a 59.48% price total return over the past year. This impressive growth is reflected in another InvestingPro Tip highlighting the company's "high return over the last year."
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Corebridge Financial, providing a deeper understanding of the company's financial health and market position.
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