BMO Capital Markets on Thursday raised its price target on Athene Holding to $62 from $54 following the company’s huge beat in Q2 top-line results. The broker reiterated a market perform rating on the stock.
The company’s Q2 core operating income per share of $1.39 beat BMO’s $1.12 estimate by 24%, and consensus estimate of $1.08 by 29%. “Our $62 target price implies 21% upside for ATH shares and is predicated on our one-year-forward operating income, capital-adjusted growth, and our estimate of ATH’s significant excess capital,” BMO analyst James Fotheringham said. “We estimate that policy changes proposed by President Trump could add as much as +10% to our current operating income forecasts; however, we remain concerned regarding the potential impact of corporate tax reform on ATH’s advantaged structure.”