Joshua Shanker, an analyst from Bank of America Securities, reiterated the Buy rating on Metlife. The associated price target was lowered to $100.00.
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Joshua Shanker has given his Buy rating due to a combination of factors including MetLife’s strong performance in Asia and improvements in their Group Benefits underwriting. The Asia segment, particularly Japan, showed significant growth with a 77% increase in earnings year-over-year, driven by higher variable investment income and volume growth. Additionally, the Group Benefits segment demonstrated improved underwriting results, with a consolidated benefits ratio that improved both year-over-year and quarter-over-quarter.
Despite a one-time tax adjustment in Latin America affecting the third-quarter results, MetLife’s variable investment income exceeded expectations due to strong private equity returns. Although share repurchases were lower than forecasted, the company still presents a healthy upside potential with a price objective of $100. This potential is supported by MetLife’s strategic shift away from capital-intensive businesses towards higher-growth opportunities, which is expected to lead to ongoing multiple expansion relative to its peer group.
According to TipRanks, Shanker is a 5-star analyst with an average return of 8.1% and a 59.55% success rate. Shanker covers the Financial sector, focusing on stocks such as Progressive, Brown & Brown, and Allstate.
In another report released on November 1, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $86.00 price target.