Wells Fargo Upgrades Lincoln National (LNC) to Overweight

Core Viewpoint - Lincoln National Corporation is identified as one of the most undervalued stocks on the NYSE, with a recent upgrade from Wells Fargo to Overweight and a target price increase to $48 from $41, driven by positive earnings growth in FY 2025 [1][2]. Financial Performance - The company experienced a 39% year-over-year growth in free cash flows for FY 2025, primarily driven by its life insurance segment, which saw improved operating profit margins due to better mortality rates and increased alternative investment income [2]. - With the improved cash flow, Lincoln National met its 2026 targets for capital buffer and leverage a year ahead of schedule, indicating strong financial health [3]. Future Outlook - Following the achievement of balance sheet targets, it is anticipated that Lincoln National will initiate stock buybacks as early as 2026, with an expected ramp-up in 2027 and 2028 [3]. Company Overview - Lincoln National Corporation, based in Radnor, Pennsylvania, provides insurance and retirement policies and was founded in 1968 [4].