AFLAC: Sector Tailwinds but Fully Valued, Supporting a Balanced Hold Recommendation

In a report released today, Jimmy Bhullar from J.P. Morgan maintained a Hold rating on AFLAC, with a price target of $89.00.

Jimmy Bhullar has given his Hold rating due to a combination of factors related to AFLAC’s earnings outlook, valuation, and risk profile. While he sees a generally constructive backdrop for life insurers in 2026 — including stronger equity markets, resilient credit conditions, and healthier sector balance sheets — he has trimmed AFLAC’s EPS forecasts modestly, reflecting company-specific headwinds and less upside than for some peers. In his view, AFLAC should still benefit from sector-wide tailwinds such as improving fee-based and spread-based earnings and ongoing capital return through buybacks and dividends, but these positives are already reasonably reflected in the stock.

At the same time, Bhullar highlights that potential deterioration in corporate credit and macro volatility remain important risks, and AFLAC’s exposure to these uncertainties tempers the near-term upside case. The stock’s valuation appears roughly in line with sector norms on earnings and book value metrics, suggesting limited multiple expansion from current levels. Combined with only modestly above-consensus earnings expectations and a more balanced risk‑reward versus higher-conviction ideas in his coverage, these considerations lead him to view AFLAC as fairly valued rather than compellingly mispriced, supporting a Hold rather than an Overweight stance.

According to TipRanks, Bhullar is a 4-star analyst with an average return of 5.9% and a 57.54% success rate. Bhullar covers the Financial sector, focusing on stocks such as AFLAC, Allstate, and Travelers Companies.

In another report released on December 22, TD Cowen also maintained a Hold rating on the stock with a $102.00 price target.