Keefe, Bruyette & Woods Maintains Brighthouse Financial, Inc. - Preferred Stock (BHFAO) Market Perform Recommendation

Keefe, Bruyette & Woods maintained a Market Perform rating on Brighthouse Financial, Inc. Preferred Stock (BHFAO) on November 7, 2025, setting an average one-year price target of $19.79, which implies a 13.74% upside from its $17.40 closing price. The company forecasts annual revenue of $8,797MM, an 11.94% increase, and non-GAAP EPS of $16.97. Despite a marginal increase in the number of institutional owners, total shares held by institutions decreased by 1.65% to 2,771K, with several major ETF holders notably reducing their positions in BHFAO.

Analysis

Keefe, Bruyette & Woods maintained a "Market Perform" rating on Brighthouse Financial, Inc. Preferred Stock (BHFAO) on November 7, 2025. The average one-year price target is set at $19.79/share, implying a 13.74% upside from the recent closing price of $17.40. This target range spans from $16.24 to $26.43, indicating a degree of analyst divergence.

The company projects robust fundamental growth, with annual revenue expected to increase by 11.94% to $8,797 million. Non-GAAP earnings per share are forecasted at $16.97, suggesting a strong earnings outlook. These projections underpin the analyst's price target, despite the neutral "Market Perform" rating.

Despite an increase in the number of institutional owners by 10% to 11 funds, total institutional shares held in BHFAO decreased by 1.65% to 2,771K over the last quarter. Notably, several major preferred stock ETFs, including PFF, PGX, PFFD, PGF, and PSK, significantly reduced their positions, with PGF cutting its allocation by 24.28%. This divergence between an increasing number of holders and decreasing aggregate share count suggests a cautious rebalancing by larger players.

Key Decisions for Investors

• Investors should consider the implied 13.74% upside to the $19.79 price target against the "Market Perform" rating, suggesting a balanced risk-reward profile.
• Monitor future institutional flow, particularly from preferred stock ETFs, as significant reductions by major holders like PGF (down 24.28%) indicate potential rebalancing or sector-specific concerns.
• Evaluate the sustainability of the projected 11.94% revenue growth and $16.97 non-GAAP EPS, as these strong fundamentals appear to be a key driver for the price target despite cautious institutional positioning.