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Research Alert: CFRA Keeps Hold Opinion On Shares Of Brighthouse Financial, Inc.

05/11/2021 12:28

04:25 PM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price by $6 to $50, or 4.1x our 2021 operating EPS estimate of $12.07 (increased by $2.02) and 3.8x our 2022 operating EPS estimate of $13.25 (upped by $2.00) versus the shares' three-year average forward multiple of 4x and a peer average of 8.9x. Q1 operating EPS of $4.36 versus $2.01 topped our $2.34 EPS estimate and the $2.68 consensus forecast on 15.55 higher operating revenues (versus our forecast of 2% to 4% growth) and 38% lower expenses. But, evidence of the volatility inherent in BHF's hedging strategy was apparent in Q1 results, as a GAAP net loss of $6.96 a share contrasted with EPS of $47.11. We raise our 2021 operating revenue growth forecast to 6% to 9%, and see growth of 5% to 7% in 2022 (up from 3% to 5%). We acknowledge BHF's above-peer revenue growth prospects and the shares' below-peer valuation, but given the volatility inherent in BHF's GAAP results, we think the dividend-less shares are fairly valued, versus historical averages.