FNF - High Rates Likely Limit Fidelity National Financial's Upside

2024-05-14 00:03:35 ET

Summary

• Fidelity National Financial's stock has risen by 50% in the past year, driven by its majority stake in F&G Annuities & Life.
• The company's core title insurance business has struggled due to slower home sales and elevated rates, which have reduced mortgage activity.
• Any rebound is likely to be slow, and at 12.7x earnings excluding F&G, FNF is fairly valued.

Shares of Fidelity National Financial ( FNF ) have been a strong performer over the past year, rising by 50%. While its core title insurance business has struggled with slower home sales, given elevated rates, its majority stake in F&G Annuities & Life ( FG ) has helped to propel the stock higher. I last covered FNF in November , rating shares a hold, and since then, it has performed in-line with the S&P 500, both returning 16%. I believe a hold remains appropriate....

For further details see: