In a recent analysis, Morgan Stanley has revised its outlook for Brighthouse Financial (BHF, Financial), reducing the price target from $52 to $41. Despite maintaining an Underweight rating on the stock, this adjustment reflects broader challenges observed in the life insurance sector.
According to analyst Bob Huang, earnings projections for the first quarter have seen a downward adjustment of 3% on average across the firm's life insurance coverage. Looking further ahead, the 2025 earnings per share (EPS) estimates have been cut by 4% compared to previous expectations. These adjustments underscore variability in performance across different companies within the sector.
For insurance companies focusing on underwriting, which typically remain relatively insulated from equity market swings, the revisions were less pronounced. However, Morgan Stanley still lowered its outlook for these firms, highlighting the increasingly difficult operating environment they are likely to encounter.
