EQH Stock Forecast & Price Target

Equitable Holdings Inc. has demonstrated strong growth across its business segments, particularly in Group Retirement, where earnings surged 35% to $132 million, driven by increased fee-based revenue and net interest margin. The company has a positive outlook for cash generation, aiming for $1.6-$1.7 billion in 2025, reflecting a solid increase from the prior year and an increase in account values by 12% to $40.7 billion largely due to market performance. Additionally, the Asset Management segment showed significant improvement with operating earnings rising 41% to $161 million, supported by higher average assets under management and performance fees, which contributes to a favorable free cash flow profile for the company.

Equitable Holdings Inc. has reported a modest 2% decline in account values to $21.4 billion, which can be attributed to unfavorable market performance compounded by client outflows. The company also experienced a significant drop in operating earnings, falling to $43 million in the fourth quarter from $68 million previously, alongside a slight decrease in the operating return on assets to 1.25%. Additionally, the pressure from unfavorable mortality trends in the Protection Solutions segment and potential equity market declines raises concerns about the sustainability of free cash flow and future earnings per share estimates, contributing to a negative outlook for the stock.