Credit Suisse analyst Andrew Kligerman has upgraded his call on Brighthouse Financial Inc.'s shares to "neutral" from "underperform," citing recent positive capital developments.

Brighthouse appears to be on target for the $1.5 billion capital return the company forecast for investors, given that it has less than $1.1 billion remaining on its authorization. The implementation of variable annuity capital reform could lead to more than $1 billion in dividends freed from Brighthouse Life Insurance Co. in 2020 and 2021, Kligerman added in a research note.

The analyst moved his price target for Brighthouse shares up to $34 from $22. He maintained his fiscal year operating EPS estimates at $4.94 for 2019, $9.77 for 2020 and $11.72 for 2021.