Wells Fargo Upgrades Lincoln National (LNC) to Overweight

Lincoln National Corporation (NYSE:LNC) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.

Wells Fargo upgraded its call on Lincoln National to Overweight (from Equal Weight) on February 25. This rating upgrade was accompanied by a 17.1% increase in the firm’s target price on the company to $48 (from $41). These changes were triggered by the release of the company’s FY 2025 earnings briefing on February 12.

The firm thinks that the company’s “momentum is gathering in a positive direction,” as shown by the 39% YoY growth in the free cash flows to the firm that Lincoln National generated in FY 2025. The life insurance segment was a key driver for this cash flow growth, with operating profit margins improving sequentially from improved mortality rates and higher alternative investment income.

With this improved cash flow, the company was able to meet its 2026 targets for capital buffer (as measured by its Risk-Based Capital (RBC) ratio) and leverage (as measured by its leverage ratio) a year in advance. With the balance sheet targets met, Wells now believes that Lincoln will start buying back stocks as early as 2026 and will ramp up in 2027 and 2028.

Lincoln National Corporation (NYSE:LNC), through its subsidiaries, provides insurance and retirement policies. The company is based in Radnor, Pennsylvania, and was founded in 1968.

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