Jefferies Upgrades Brighthouse Financial (BHF) Stock Rating to Buy with $54.00 Price Target
On Wednesday, Jefferies made a favorable adjustment to its stance on Brighthouse Financial, Inc. (NASDAQ: BHF) stock, shifting the rating from Hold to Buy and increasing the price target to $54.00 from the previous $49.00.
This upgrade signifies a significant shift in Jefferies' view on the insurer, marking the first time they have given Brighthouse a Buy rating since covering the stock in 2017 post its spin-off from MetLife (NYSE: MET).
The analyst cited several reasons for the upgrade, highlighting Brighthouse's strategic positioning, low P/E ratio, and potential for meeting consensus expectations for stock buybacks. Jefferies also noted the company's above-peer level of holding company liquidity as a factor that could attract activist investors.
In light of recent developments, including an upgrade from Keefe, Bruyette & Woods and a stock price target reduction from Piper Sandler, Brighthouse Financial continues to navigate the financial landscape with a positive outlook on its prospects.
InvestingPro Insights:
With a Market Cap of approximately $2.72 billion and a challenging P/E Ratio of -2.35, Brighthouse's valuation metrics are complex. However, the adjusted P/E Ratio for the last twelve months slightly improves to -2.25, indicating potential shifts in the company's earnings landscape.
InvestingPro Tips suggest that Brighthouse's management has been actively buying back shares, aligning with Jefferies' expectation for stock buybacks. Analysts predict profitability this year, offering a potentially brighter outlook for investors.
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Analysis:
Brighthouse Financial received a notable Buy rating upgrade from Jefferies, indicating positive prospects for the company's stock. Despite challenges, such as stock price target reductions from other firms, Brighthouse's strategic positioning and potential for stock buybacks show promise for investors. By considering the company's valuation metrics and management actions, investors can make informed decisions about their finances and future investments in Brighthouse Financial.