On Friday, Piper Sandler reiterated its Overweight rating on Corebridge Financial (NYSE: CRBG) with a steady price target of $35.00. The firm's analysis follows the recent announcement on May 30, 2024, by AIG (NYSE:AIG) of a secondary stock sale of approximately 5.7% of Corebridge Financial's shares. This move is expected to reduce AIG's ownership in Corebridge Financial to below the majority threshold.
Previously in May, AIG disclosed its plans to sell around a 20% stake in Corebridge Financial to Nippon Life, with the transaction anticipated to be finalized in the first quarter of 2025. Prior to this secondary offering, AIG held a 52.7% stake in Corebridge Financial as of the first quarter of 2024.
Corebridge Financial had previously announced an expansion of its share repurchase program by $2 billion earlier in May. The company had already bought back $243 million worth of its shares in the first quarter of 2024. Piper Sandler views these developments as incremental positives for Corebridge Financial, which is seen as one of the more attractive Overweight-rated stocks in their coverage.
The firm also highlighted Corebridge Financial's trading value, which is at a multiple of 5.0 times the estimated earnings for 2025. This valuation represents a 2.2 times discount compared to MET and a 3.0 times discount to PRU. Additionally, the firm noted Corebridge Financial's growth potential in Institutional Markets and the yet-to-be-realized optionality for its liabilities.
InvestingPro Insights
Piper Sandler's optimistic stance on Corebridge Financial (NYSE: CRBG) is echoed by the recent data and analyst outlooks captured in InvestingPro metrics. With a Market Cap of $18.07 billion and a forward-looking P/E Ratio of 9.74, Corebridge Financial appears to be valued attractively in the market. This is especially relevant when considering the company's significant dividend yield of 7.02%, showcasing a commitment to returning value to shareholders.
InvestingPro Tips highlight that analysts have revised their earnings upwards for Corebridge Financial, indicating confidence in the company's performance going forward. Moreover, the company's strong price performance, with a 105.89% one-year total return, underscores its robust market presence and investor optimism.
For those looking to delve deeper into Corebridge Financial's prospects, InvestingPro offers additional insights, with a total of 9 more InvestingPro Tips available. These tips provide a more comprehensive understanding of the company's financial health and market position. Interested readers can access these valuable insights and take advantage of an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
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