EQH Stock Forecast & Price Target

Equitable Holdings Inc. demonstrated substantial growth in multiple business segments, with Group Retirement earnings increasing by 35% to $132 million, largely attributed to enhanced fee-based revenue and net interest margins. The company anticipates cash generation growth, projecting $1.6-$1.7 billion for 2025, an increase from $1.5 billion in 2024, while account values rose 12% to $40.7 billion due primarily to market performance. Additionally, the Asset Management segment achieved significant operating earnings of $161 million, a 41% year-over-year increase, facilitated by higher base fees and performance fees, indicating an overall strong financial outlook for Equitable Holdings.

Equitable Holdings Inc. has experienced a modest decline of 2% in account values, amounting to $21.4 billion, which is attributed to market performance and outflows. The company's operating earnings fell significantly from $68 million to $43 million in the fourth quarter, while the operating return on assets on a trailing 12-month basis in the segment decreased to 1.25%, indicating a downward trend. Additionally, challenges such as unfavorable mortality trends, pressure from an equity bear market, and failure to enhance free cash flow generation have led to a downward revision of the 2025 EPS estimate, raising concerns about the company's financial stability and growth potential.