AllianceBernstein's stock price rises due to the impact of a merger and acquisition.

Investing.com – AllianceBernstein Holding LP (NYSE: AB) stock rose 2.2% on Thursday after its major shareholder, Equitable Holdings, announced a merger with Corebridge Financial, creating a retirement, life, wealth, and asset management company with a scale of $22 billion.

The merger will enable AllianceBernstein to gain over $100 billion in assets under management from Corebridge’s general account and separate accounts during 2027. These assets mainly consist of low-fee fixed income management assets from Corebridge’s general and separate accounts.

Evercore ISI analyst John Dunn reaffirmed his Outperform rating on AllianceBernstein with a target price of $41.00, commenting: “Based on our coverage, this has the biggest impact on AllianceBernstein, which is controlled by EQH, and is expected to gain over $100 billion in assets under management during 2027. Notably, these are low-fee fixed income assets from CRBG’s general and separate accounts (our intuition is that the fee mix is in the low to mid single digits), so there won’t be a significant revenue impact, but it will bring about approximately 1% appreciation. This does not include any alternative/private market mandates, but AB is still on track to reach $100 billion in such assets by 2027. Nonetheless, we do expect AB to secure future private market mandates from the larger general accounts. Overall, the initial impact is small, but we believe this will contribute to future performance and accelerate growth.”

The merger between Corebridge and Equitable is expected to be completed by the end of 2026, pending regulatory approval and approval from the shareholders of both companies.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.