Globe Life price target raised to $160 from $155 at KBW as DOJ closes probe

Published 29/07/2025, 13:26
Globe Life price target raised to $160 from $155 at KBW as DOJ closes probe

Investing.com - Keefe, Bruyette & Woods raised its price target on Globe Life (NYSE:GL) to $160 from $155 while maintaining an Outperform rating after the Department of Justice closed its investigation into the company.

The DOJ concluded its probe into sales practices of certain American Income agents with no enforcement action, effectively ending the regulatory uncertainty that began in April 2024.

KBW noted that despite Globe Life stock rebounding, it still trades at approximately 9x multiple on 2026 estimated earnings, representing a 20% discount to its historical price-to-earnings ratio of 11-12x.

The new price target is based on a 10.5-11.0x multiple of 2026 estimated earnings per share, according to KBW.

The investment firm highlighted Globe Life’s consistent long-term track record of growing premiums and earnings by 3-5% annually, high-single-digit EPS growth, 13-15% return on equity, predictable capital return, and improving free cash flow conversion as supporting factors for the rating.

In other recent news, Globe Life Inc. reported its financial results for the second quarter of 2025. The company posted earnings per share of $3.27, slightly surpassing the analysts’ forecast of $3.25. However, Globe Life’s revenue fell short of expectations, coming in at $1.48 billion compared to the anticipated $1.51 billion. Additionally, the U.S. Attorney’s Office for the Western District of Pennsylvania concluded its investigation into Globe Life’s sales practices without taking any enforcement action. This investigation had been focused on the sales practices of certain independent agents selling American Income Life policies. In another development, CFRA upgraded Globe Life’s stock rating to Buy from Hold. This upgrade followed the favorable resolution of an SEC investigation into fraud allegations, which ended without enforcement actions. CFRA raised its price target for Globe Life to $155.00 from $130.00, citing potential for multiple expansion in the company’s shares.

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