Did Mizuho’s Capital-Light Thesis Just Reframe Equitable Holdings’ (EQH) Long-Term Investment Narrative?

• Mizuho recently initiated coverage on Equitable Holdings with an Outperform rating, citing the company’s capital-light model, expanding retirement market presence, and consistent shareholder returns through rising dividends and share repurchases.
• This fresh analyst endorsement reinforces the view that Equitable’s repositioning toward lower capital intensity and recurring retirement-focused revenues is central to its long-term story.
• We’ll now explore how Mizuho’s upbeat initiation, particularly its focus on Equitable’s capital-light shift, influences the company’s broader investment narrative.

We've found 13 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Equitable Holdings Investment Narrative Recap

To own Equitable Holdings, you need to believe in its shift toward capital-light retirement solutions and its ability to turn that model into sustainable cash generation, even while reported earnings are currently negative. Mizuho’s new Outperform rating and focus on retirement growth do not materially change the near term picture, where the key catalyst remains how effectively Equitable converts this model into improving profitability, and the biggest risk is pressure on margins as competition increases and higher margin legacy RILA business runs off.

Among recent announcements, the ongoing share repurchase program stands out in the context of Mizuho’s coverage. Equitable retired about 4.21% of its share count in Q3 2025 alone, and 13.8% since early 2024, while also maintaining a rising dividend. For investors, these actions tie directly into the catalyst of capital efficiency and potential earnings per share recovery, but they sit against a backdrop of net losses in 2025 and reliance on continued strong cash generation to sustain this pace of capital returns.

Yet against these supportive signals, the risk that Equitable’s higher margin RILA book is running off is something investors should be aware of, because...

Read the full narrative on Equitable Holdings (it's free!)

Equitable Holdings' narrative projects $18.3 billion revenue and $2.3 billion earnings by 2028. This requires 9.5% yearly revenue growth and a $1.9 billion earnings increase from $429.0 million today.

Uncover how Equitable Holdings' forecasts yield a $64.27 fair value, a 33% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community sit between US$64.27 and US$81.17, compared with a recent price near US$48. You can weigh those views against Equitable’s capital light shift and heavy share buybacks, which could help or hinder future returns depending on how margins and earnings recover.

Explore 2 other fair value estimates on Equitable Holdings - why the stock might be worth just $64.27!

Build Your Own Equitable Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Equitable Holdings research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Equitable Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Equitable Holdings' overall financial health at a glance.

Ready To Venture Into Other Investment Styles?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• This technology could replace computers: discover 28 stocks that are working to make quantum computing a reality.
• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com