Shares of Brighthouse Financial on Thursday fell after Goldman Sachs downgraded its recommendation on the stock of the insurance company to sell from neutral.
At 1:20 pm E.T., shares were down 6.7%, at $47.85.
Goldman Sachs’s downgrade comes a day after the life insurance company’s multi-year cash-flow disclosure suggested a slower ramp-up of free cash flow than expected, even if it also showed show more stability across different scenarios, analysts said.
Brighthouse Financial’s cash-flow expectations don’t assume any effect from changing economic regulations either, analysts added.
“It must be considered as a risk given the significant reserve charges we have seen elsewhere in the industry and the large amount of soft capital that Brighthouse Financial has used to capitalize the legal entity,” analysts noted.
Goldman Sachs cuts its target price to $43 from $47 previously.