Lincoln National (LNC): Evaluating Valuation as Leadership Shifts and New Private Markets Fund Launch

Lincoln National (LNC) just shook things up by announcing John Morriss as its new Executive Vice President and Chief Investment Officer. The company also formally launched a new private market royalty fund for U.S. investors.

See our latest analysis for Lincoln National.

Lincoln National’s shake-up at the top and the launch of its new royalty fund come as the company works to build momentum after a year of modest but steady growth. While the 1-year total shareholder return sits at 36.4%, reflecting improving sentiment, the most recent 90-day share price return of 19.9% suggests growing optimism about the company’s direction under fresh leadership and innovative investment strategies.

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But with shares already up nearly 20% in the last quarter and trading close to analyst price targets, should investors see further upside, or has the recent momentum already been factored into Lincoln National’s valuation?

Most Popular Narrative: 3.9% Undervalued

Lincoln National’s current share price of $41.09 sits slightly below the most widely followed fair value estimate of $42.75, suggesting mild upside remains. This sets up a debate about how much growth is already priced into the stock’s climb.

Lincoln National's transformation toward a more diversified and capital-efficient product mix, especially in higher-margin, less capital-intensive areas like supplemental health and spread-based annuities, positions them to benefit from rising demand as Americans focus more on retirement readiness and financial wellness. This supports stronger long-term revenue and net margin growth.

Read the complete narrative.

Curious what’s fueling this valuation? The narrative’s projections are not just about gradual growth; they hinge on a fundamental shift in product focus and profitability. What bold assumptions and future margins support this price? Uncover the numbers and logic shaping the current consensus.

Result: Fair Value of $42.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent challenges in legacy variable annuity products or setbacks with technology modernization could quickly undermine profit growth and stall the bullish narrative.

Find out about the key risks to this Lincoln National narrative.

Build Your Own Lincoln National Narrative

If you think there's another angle worth considering or want to dive deeper into the details yourself, it's quick and easy to put together your own narrative. Usually, this takes less than three minutes. Do it your way

A great starting point for your Lincoln National research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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