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Investing.com - Evercore ISI raised its price target on Aflac (NYSE:AFL) to $106.00 from $105.00 on Thursday while maintaining an Underperform rating on the insurance company’s stock. According to InvestingPro data, Aflac currently trades near its Fair Value, with a market capitalization of $56.25 billion and a P/E ratio of 23.6.
The price target adjustment follows what Evercore described as a strong sales quarter from Aflac’s Japan operation in the second quarter and better-than-expected net investment income (NII). The company has demonstrated remarkable financial stability, having raised its dividend for 41 consecutive years, with a current dividend yield of 2.19%.
Evercore has increased its second-half 2025 earnings per share and Japan sales estimates to reflect continued momentum, though the firm expects some moderation into 2026 due to potential floating rate decay on net investment income.
The sustainability of Aflac’s new cancer product sales will be a key focus following what Evercore called "a very successful launch" in the second quarter, with some sales momentum expected to continue through year-end 2025 despite an anticipated fade after the initial wave.
Evercore expressed caution about Aflac’s planned launch of a refreshed medical product in 2026, noting this may prove more challenging as the firm views the medical insurance market as more competitive than the cancer insurance segment. Despite these challenges, Aflac maintains strong financial metrics with a healthy current ratio of 1.22 and has been profitable over the last twelve months with $2.4 billion in net income.
In other recent news, Aflac Inc . reported its second-quarter earnings for 2025, exceeding analysts’ expectations with an adjusted earnings per share (EPS) of $1.78, surpassing the forecasted $1.70. However, the company’s revenue fell short of expectations, coming in at $4.16 billion compared to the anticipated $4.33 billion. Additionally, Aflac announced that its Board of Directors has authorized the purchase of up to 100 million additional shares of its common stock, increasing the total shares available for repurchase to approximately 130.9 million. This move indicates the company’s commitment to returning value to its shareholders. Meanwhile, BMO Capital raised its price target for Aflac to $105.00 from $102.00, maintaining a Market Perform rating. This revision reflects an upward adjustment of Aflac’s forward earnings per share run-rate by approximately 4% for 2025 and 2026. These developments highlight Aflac’s ongoing strategic initiatives and robust performance, particularly in Japan.
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