UBS has taken a sharply more cautious stance on $CRBG, downgrading Corebridge Financial from “Buy” to “Sell” and slashing its price target from $40 to $28. The shift signals growing concerns about near-term earnings visibility and asset under management (AUM) stability—two critical levers that could weigh on the stock’s performance in the coming quarters.
💼 Why UBS is Turning Bearish
At the heart of the downgrade is the expectation that Corebridge may face challenges in maintaining AUM levels, alongside softer-than-expected earnings guidance. UBS analysts noted that these headwinds, while underappreciated by some bulls, are becoming more evident in recent financial disclosures. This makes the current valuation appear stretched relative to future risks.
📊 Dividend Fundamentals
💰 Dividend Yield: 2.98%, delivering $0.96 per share annually
📌 Payout Ratio: 25.81%, suggesting a well-covered and sustainable dividend
📈 Dividend Track Record: Regular quarterly payments, with the latest ex-dividend date on March 17, 2025
Despite the downgrade, $CRBG continues to reward shareholders with a modest but reliable dividend. However, with pressure building on earnings and asset flows, dividend stability could eventually come into question if financial stress accelerates.
Investors with positions in $CRBG should stay alert to forward guidance in upcoming quarters, as the company works to stabilize performance in an increasingly scrutinized environment.