Evercore ISI raises Lincoln National stock target to $33 on market performance By Investing.com

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On Thursday, Evercore ISI made an adjustment to the financial outlook of Lincoln National Corporation (NYSE:), modifying the price target to $33.00 from the previous $32.00. The firm maintained its In Line rating for the insurance company’s stock.

The adjustment follows a review of Lincoln National’s first-quarter performance and its potential future earnings. The analyst noted a downward revision of the first-quarter 2024 earnings estimate, from $1.35 to $1.02 per share. This change primarily accounts for an anticipated severance expense of approximately $40 million.

Looking ahead to the second quarter of 2024, the analyst expects an upward trajectory in earnings estimates by around 3%. This anticipation is based on the robust performance of equity markets in the first quarter, which is likely to positively influence fee income, particularly within the annuity segment. The ‘s strong showing, contrasted with more subdued results from other indices, is a key factor in this outlook.

The increase in the price target to $33.00 aligns with the newly adjusted expectations for 2025. The analyst attributes this change to the favorable impact that the equity market’s first-quarter performance could have on Lincoln National’s fee income, emphasizing the significance of the annuity segment’s robust results linked to the S&P 500’s performance.

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