On Monday, Piper Sandler, a financial services firm, increased its price target on Corebridge Financial (NYSE: CRBG) shares to $35, up from the previous target of $34, while retaining an Overweight rating on the stock.
The firm's analyst pointed to Corebridge Financial's strong performance and the potential for a de-consolidation from its parent company, AIG (NYSE:AIG), as positive factors influencing the decision.
Corebridge Financial has recently authorized an additional $2 billion for share repurchases, indicating the company's capacity to significantly reduce its outstanding shares. This move is seen as a reflection of the company's financial strength and a positive signal to the market.
The industry's variable investment income (VII) is expected to see improvement going forward. Despite the anticipation that spreads have reached their peak, the analyst expects growth in absolute spread income to be driven by asset growth.
Corebridge's Institutional Markets segment has demonstrated effective distribution execution and is gaining a stronger position in the market as the industry evolves.
Piper Sandler has adjusted its price target for Corebridge Financial to reflect higher earnings per share (EPS) estimates. The firm's valuation multiple of 5.9 times its 2025 earnings estimate remains unchanged and continues to represent a discount compared to the average multiple of 7.7 times earnings within the life insurance company (lifeco) universe.
The analyst's comments underscore a positive outlook for Corebridge Financial, with strategic positioning and financial maneuvers that are expected to benefit the company in the near future. The revised price target of $35 is indicative of the analyst's confidence in the company's growth trajectory and financial prospects.
InvestingPro Insights
In light of Piper Sandler's updated price target, Corebridge Financial (NYSE: CRBG) shows a promising financial landscape, as reflected in recent InvestingPro data. The company's market capitalization stands at a robust $17.54 billion, with a price-to-earnings (P/E) ratio of 7.51, which indicates that the stock may be trading at a low earnings multiple compared to the industry average. This aligns with the InvestingPro Tip that Corebridge Financial is indeed trading at a low earnings multiple, potentially offering an attractive valuation for investors.
InvestingPro Data also reveals a noteworthy dividend yield of 7.25%, underscoring the company's commitment to returning value to shareholders. This is complemented by the fact that Corebridge Financial has experienced a significant price uptick, with a 6-month total return of 51.69%, which suggests strong market confidence and performance.
For investors seeking a deeper dive into Corebridge Financial's prospects, additional InvestingPro Tips highlight the company's expected net income growth this year and its status as a prominent player in the Financial Services industry. With a total of 11 InvestingPro Tips available, investors can further explore the company's financial metrics and analyst predictions. To access these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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