Stock price when the opinion was issued
They changed CEOs a few years ago. The spike in interest rates unsettled their capital ratios, so shares slid in 2022, but they've been building their capital. Are in a steady eddy business, at a 5-6x PE and pays a 5.6% dividend. Has a book value of $47 (shares are below $32). Has recurring cash flow and a great brand. He expects them to raise the dividend and buy back shares.
(Analysts’ price target is $36.46)
LNC is a highly regarded wealth management company offering investment, insurance, annuity and other services. It is expanding its slate by creating unique partnerships, like the recent agreement with a private equity firm. It trades at 4x earnings, under book, and supports a 43% ROE. Cash reserves are growing as shares are bought back and the dividend yield is backed by a payout ratio of 10% of cash flow. We recommend setting a stop at $21, looking to achieve $37 -- upside potential of 21%. Yield 5.9%
(Analysts’ price target is $36.92)