LNC: Shares Will Likely See Stability As Profits And Capital Levels Improve

Lincoln National’s analyst price target has increased modestly from $43.75 to $44.00. Analysts attribute this slight upward revision to continued earnings growth, improved capital levels, and sector tailwinds.

Analyst Commentary

Recent Street research offers a mixed outlook on Lincoln National, with some analysts highlighting progress in earnings stabilization and others pointing out areas for continued caution. The following summarizes key analyst perspectives driving the most recent price target changes and ratings.

• Analysts note that Lincoln National is showing steady profits and maintaining stronger capital positions. This supports a gradual re-rating of its valuation toward historical levels.
• Continued improvement in claims experience is viewed as a positive indicator for both upcoming actuarial review periods and long-term earnings emergence.
• Favorable sector conditions and normalization in variable investment income are contributing to underlying tailwinds, enhancing the company’s growth prospects.
• Analysts see strength in the company’s distribution capabilities and its shift toward a more capital-light business model, which is expected to support more profitable growth over time.

• Bearish analysts caution that Lincoln National’s shares may struggle until there is clearer evidence of higher distributable earnings and more robust capital returns.
• Despite improved fee and trading income, there are ongoing secular outflow headwinds that could limit near-term upside.
• Some research coverage has initiated with an underperform outlook. This reflects concerns that current margins and capital trends may not be sufficient to support significant valuation gains in the short term.
• The company continues to face competitive pressures in its core segments, requiring further execution on strategic initiatives to drive sustainable growth.

What's in the News

• Piper Sandler raised Lincoln National's price target to $42 from $40, citing tailwinds from variable investment income normalization and continued strength in claims experience (Periodicals).
• Lincoln Financial formally launched the Lincoln Partners Group Royalty Fund, the first evergreen private market royalties fund for individual investors in the U.S. in partnership with Partners Group (Key Developments).
• The company introduced Lincoln Level Advantage 2 IncomeSM, its first registered index-linked annuity with a built-in income benefit and innovative legacy protection features (Key Developments).
• Lincoln Financial announced the formal launch of the Lincoln Bain Capital Total Credit Fund, providing individual investors access to a globally diversified private credit portfolio (Key Developments).

Valuation Changes

• The consensus analyst price target has risen slightly from $43.75 to $44.00, reflecting an incremental improvement in overall valuation expectations.
• The discount rate has fallen moderately to 7.83% from 8.13%, indicating a slightly lower perceived risk profile for future cash flows.
• The revenue growth estimate has decreased from 5.87% to 5.35%, suggesting somewhat tempered expectations for top-line expansion.
• The net profit margin has improved modestly, with the projection increasing from 7.76% to 7.86%.
• The future P/E multiple has edged lower from 7.72x to 7.56x, implying a minor contraction in valuation multiples based on forward earnings.