Lincoln National downgraded to Underperform from Hold at Jefferies

Jefferies analyst Suneet Kamath downgraded Lincoln National to Underperform from Hold with a price target of $25, down from $40. The analyst estimates the company’s 2023 normalized free cash flow at $200M and sees only a modest recovery to $400M-$500M in 2024, well below its $900M prior annual level. Lincoln’s "sizeable" free cash flow drop "leaves little margin for error," Kamath tells investors in a research note. The analyst does not expect buybacks to resume until 2025 at the earliest, absent a sizable, and possibly dilutive, block deal. In addition, Lincoln shares do not seem "washed out" despite falling 50% year-to-date, writes Kamath.