BMO Capital raises Globe Life stock price target to $149 on FCF conversion

Published 30/07/2025, 16:38
BMO Capital raises Globe Life stock price target to $149 on FCF conversion

Investing.com - BMO Capital raised its price target on Globe Life (NYSE:GL) to $149.00 from $114.00 on Wednesday, while maintaining a Market Perform rating on the insurance company’s stock. The stock, currently trading near its 52-week high of $143.84, has delivered impressive returns of 53% over the past year. InvestingPro data reveals 12 additional key insights about Globe Life’s performance and valuation.

The significant price target increase reflects BMO’s assessment that Globe Life can re-rate closer to its longer-term averages on both free cash flow (FCF) and price-to-earnings (P/E) metrics over time.

BMO highlighted Globe Life’s FCF conversion profile, which is inflecting upward toward approximately 65% after declining over the past decade, as a key factor supporting the higher valuation target.

The firm also cited positive underlying trends at Globe Life’s Direct to Consumer (DTC) arm, which enhances exclusive agency sales through leads and analytics capabilities.

BMO noted the removal of a valuation overhang following recent disclosure that the SEC and Department of Justice are not recommending enforcement actions after their inquiries and investigations, though Globe Life’s valuation still embeds some discount versus its long-term averages.

In other recent news, Globe Life Inc. announced that the U.S. Attorney’s Office for the Western District of Pennsylvania has closed its investigation into the company’s sales practices without taking any enforcement action. This investigation involved subpoenas related to sales practices by independent sales agents at Globe Life’s subsidiary, American Income Life. The resolution of this probe removes a significant regulatory uncertainty for the company. Following the closure of the investigation, TD Cowen reaffirmed its Buy rating on Globe Life, maintaining a price target of $182.00. Similarly, Keefe, Bruyette & Woods raised its price target for the company to $160 from $155, while maintaining an Outperform rating. Additionally, CFRA upgraded Globe Life’s stock rating to Buy from Hold, increasing the price target to $155.00. The conclusion of the SEC investigation into fraud allegations, also without enforcement actions, was highlighted by CFRA as a catalyst for potential growth. These developments reflect a positive shift in the regulatory landscape for Globe Life.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.