MetLife downgraded to In Line from Outperform at Evercore ISI

Evercore ISI downgraded MetLife (MET) to In Line from Outperform with a price target of $97, down from $108, and removed MetLife from the Evercore ISI Core List. Despite a solid Q3 earnings print, the downgrade reflects potential downside to forward earnings, relatively high valuation versus mid-cap peers, and pressure from low new-money spreads alongside higher commercial mortgage loan risk, which could hurt both multiples and earnings if credit or commercial real estate conditions worsen, the analyst tells investors in a research note. While additional risk transfer deals could be a catalyst, execution may be delayed as the company appears willing to wait for better pricing, particularly in long-term care where margins and cash flow remain positive.