On Friday, Deutsche Bank (ETR:DBKGn) analysts upgraded Corebridge Financial shares from Hold to Buy, raising the price target to $40 from the previous $33. According to analysts, Corebridge is well-positioned for significant organic growth in 2025.
This optimistic outlook is based on a combination of favorable demographics, a robust equity market, and a continuous period of higher interest rates, which are all expected to contribute to the company's growth.
The analysts highlighted Corebridge's dedication to operational efficiency and balance sheet optimization as key factors that should enhance the company's returns on capital and ultimately drive shareholder value. He also pointed out two potential near-term catalysts that could further propel the stock's momentum. The first is the anticipated announcement of a new efficiency plan to be released with the full-year results. The second is the expectation of additional divestitures of AIG (NYSE:AIG)'s Corebridge holdings in 2025.
These divestitures are seen as a strategic move that could allow Corebridge to achieve the float-adjusted market capitalization necessary for inclusion in the S&P 500 index. The analyst's upgraded price target of $40 suggests a valuation of 7.2 times the 2025 earnings per share (EPS) estimates for Corebridge, coupled with an attractive total yield of 10%, which includes dividends and buybacks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.