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Brighthouse Financial: Hold Rating Amid Earnings Miss and Market Speculation

Analyst Suneet Kamath of Jefferies maintained a Hold rating on Brighthouse Financial (BHFResearch Report), retaining the price target of $57.00.

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Suneet Kamath has given his Hold rating due to a combination of factors affecting Brighthouse Financial. The company’s recent earnings per share were below expectations, and while there was an improvement in the Risk-Based Capital (RBC) ratio, this was largely due to a one-time benefit from the Mean Reverse Parameter, which may not be sustainable in the long term.
Additionally, the market’s focus on potential mergers and acquisitions rather than the company’s fundamentals makes predicting stock price movements challenging. Despite some favorable underwriting margins, the overall performance was impacted by lower net investment income and higher corporate expenses. Given these uncertainties and the speculative nature of the market’s current focus, Kamath has opted for a Hold rating.

According to TipRanks, Kamath is a 5-star analyst with an average return of 10.8% and a 67.93% success rate. Kamath covers the Financial sector, focusing on stocks such as Equitable Holdings, Lincoln National, and Primerica.

In another report released on May 9, Piper Sandler also maintained a Hold rating on the stock with a $60.00 price target.

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