On Thursday, BMO Capital Markets initiated coverage on Equitable Holdings Inc (NYSE:EQH), currently trading at $53.18 with a market capitalization of $16.66 billion, with an optimistic outlook, assigning the stock an Outperform rating and setting a price target of $70.00. According to InvestingPro data, the stock has delivered impressive returns, gaining 64.9% over the past year and 26.8% in the last six months. The firm's analysis highlighted the company's free cash flow profile, which is perceived as increasingly attractive due to its stability and potential for growth, supported by strong levered free cash flow of $1.052 billion in the last twelve months. BMO Capital Markets pointed out that Equitable Holdings is transitioning its business towards more capital-efficient models, maintaining a healthy current ratio of 1.68. For deeper insights into EQH's financial health and growth potential, InvestingPro subscribers have access to over 30 additional financial metrics and analysis tools.
According to BMO Capital Markets, the positive rating is supported by a strong U.S. economic environment and demographic trends, such as an aging population, which are expected to drive higher demand for the company's retirement products. The firm's analysts believe these factors create a favorable condition for Equitable Holdings' continued growth, reflected in its consistent dividend growth of 9.09% and seven consecutive years of dividend increases.
The research firm's coverage comes at a time when Equitable Holdings is focusing on reducing the volatility in its business and aiming for stronger growth by adjusting its business mix. This strategic shift is designed to make the company's operations less capital-intensive over time.
Equitable Holdings, which specializes in providing retirement solutions, is set to benefit from demographic changes. As the population ages, the need for retirement planning and financial security becomes more pronounced, which could boost the company's performance.
BMO Capital Markets' report, titled "The Bright Side of Life," delves into a detailed view of the life insurance sector and the opportunities it presents. The firm's positive stance on Equitable Holdings reflects confidence in the company's ability to capitalize on these opportunities and deliver value to its shareholders.
In other recent news, Equitable Holdings, Inc. reported a robust 34% year-over-year increase in its Q3 non-GAAP operating earnings, reaching $501 million. The company's assets under management also saw significant growth, exceeding $1 trillion, a 20% surge from the previous year. In board developments, Equitable Holdings announced the appointment of Douglas Dachille as an independent member, a move that aligns with corporate governance requirements for director independence.
Deutsche Bank (ETR:DBKGn) upgraded Equitable Holdings from Hold to Buy, recognizing the company's dominant position in the Registered Index-Linked Annuity (RILA) market and its strong capital situation. The upgrade underlines the firm's confidence in Equitable's potential for growth and increased value for shareholders.
In parallel, Athene Holding (NYSE:ATH) Ltd. disclosed its third-quarter financial results, providing important insights into its financial health. The report, signed off by the company's executive vice president and chief financial officer, Martin P. Klein, underscores the formal presentation of the financial results to the market and regulatory bodies. These recent developments highlight the ongoing financial performance and strategic moves of both Equitable Holdings and Athene Holding.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.