Wolfe Research has downgraded Equitable Holdings Inc. from Outperform to Peerperform, citing increased uncertainty surrounding the company’s proposed merger with Corebridge Financial (CRBG). The downgrade comes ahead of a shareholder vote scheduled for July 30, with analyst Tracy Benguigui expressing reduced confidence that a competing bid from an alternative asset manager will emerge. As a result, Wolfe believes the current risk-reward profile has become more balanced, prompting the ratings change.
Merger Remains the Key Focus
Equitable and Corebridge announced their all-stock merger earlier this year, a transaction expected to create one of the largest diversified financial services companies in the United States. The combined business would oversee approximately $1.5 trillion in assets under management and administration, serve more than 12 million customers, and target over $500 million in annual run-rate expense synergies by the end of 2028. The deal is expected to close by the end of 2026, subject to shareholder and regulatory approvals.
Mixed Analyst Sentiment
While Wolfe Research has adopted a more neutral stance, broader Wall Street sentiment remains constructive. According to Investing.com, analysts continue to see meaningful upside potential for Equitable Holdings, with consensus price targets ranging from $50 to $68 per share. At the time of the downgrade, the stock was trading around $45.71, giving it a market capitalization of roughly $12.9 billion. The differing analyst views reflect uncertainty over merger execution rather than concerns about the company’s underlying operations.
What Investors Should Watch
The upcoming shareholder vote represents a key milestone for the proposed merger. Investor attention will remain focused on whether shareholders approve the transaction, whether regulators clear the combination, and whether any unexpected competing offers emerge before the deal is finalized. Until there is greater clarity, analysts expect merger-related developments to remain the primary driver of Equitable Holdings’ share performance. If the transaction proceeds as planned, the combined company aims to strengthen its position across retirement services, wealth management, asset management, insurance, and institutional markets while delivering significant long-term cost synergies.
