Corebridge Financial (CRBG) Sees Price Target Increase as Q1 2024 Earnings Beat Estimates

Piper Sandler's John Barnidge raised their price target on Corebridge Financial (NYSE: CRBG) by 2.9% from $34 to $35 on 2024/05/06. The analyst maintained their Strong Buy rating on the stock. Barnidge cited the company's strong Q1 2024 results and the increase in share repurchase authorization as key factors in their decision.

Corebridge Financial reported impressive financials for Q1 2024. The company's earnings per share (EPS) of $1.10 exceeded the Zacks Consensus Estimate of $1.05 and showed a 13.4% increase compared to Q1 2023. Additionally, Corebridge Financial's revenue of $5.85 billion surpassed the Zacks Consensus Estimate of $5.5 billion, representing a 9.1% increase year-over-year. The company also saw a 2.5% year-over-year growth in premiums and deposits, reaching $10.6 billion.

President and CEO Kevin Hogan expressed his satisfaction with the company's performance, stating, "Corebridge had a very strong start to 2024 with operating EPS increasing 13% year-over-year to $1.10." Hogan attributed the positive results to their diversified business model, which generates multiple sources of income and consistent cash flow. He emphasized the company's focus on profitable organic growth and leveraging their product suite and distribution platform to meet the needs of the aging U.S. population.

Hogan also highlighted the growing awareness among advisors regarding the value of annuities in retirement planning. This, combined with the macroeconomic environment, contributed to Corebridge Financial's ability to generate $10.6 billion in premiums and deposits during Q1 2024 and a total of $50 billion over the last five quarters. The company achieved these results while reducing general operating expenses by 10% year-over-year through disciplined expense management and the implementation of their modernization program, Corebridge Forward.

In a show of confidence, Corebridge Financial's Board of Directors approved a $2 billion increase to the existing share repurchase program. Hogan stated, "This reflects their ongoing confidence in our financial position and strategic direction." He attributed the company's strong balance sheet to a long-term commitment to measured growth, prudent risk management, and disciplined asset and liability management.

Apart from the positive rating on Corebridge Financial, analyst John Barnidge made several changes to other stocks in their portfolio. They lowered the price target on Metlife Inc by 3.5% from $85 to $82, while maintaining a Strong Buy rating. Prudential Financial Inc also saw a 3.2% decrease in price target from $125 to $121, with a Hold rating maintained. Lastly, Lincoln National Corp had its price target lowered by 6.3% from $32 to $30, with a Hold rating unchanged.

According to WallStreetZen, 85.7% of top-rated analysts currently rate CRBG as a Strong Buy or Buy, with 14.3% considering it a Hold. No analysts recommend or strongly recommend selling the stock.

Since Corebridge Financial's latest quarterly report on May 3, 2024, the stock price has increased by 1.9%. Year-over-year, the stock has seen significant growth, with a 74.7% increase compared to the previous year. During this period, Corebridge Financial has outperformed the S&P 500, which experienced a 25.2% increase.

Piper Sandler analyst John Barnidge ranks in the top 10% out of 4,575 Wall Street analysts, according to WallStreetZen. Barnidge specializes in the Financial Services sector and has an average return of 12.6% and a 63% win rate.

Corebridge Financial, Inc., a subsidiary of American International Group, Inc., provides retirement solutions and insurance products in the United States. The company operates through various segments, including Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets. Corebridge Financial offers a range of products and services, such as fixed annuities, variable annuities, term life and universal life insurance, and stable value wraps. The company's strong financial performance and strategic initiatives have positioned it as a leader in the industry.

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