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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.
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