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Investing.com - Keefe, Bruyette & Woods raised its price target on Globe Life (NYSE:GL) to $162.00 from $160.00 while maintaining an Outperform rating following the company’s third-quarter 2025 results.
KBW increased its earnings per share estimates for 2025, 2026, and 2027 by 1-2%, citing higher life margins and share buybacks as primary drivers of the upside, partially offset by lower excess net investment income. InvestingPro analysis reveals management has been aggressively buying back shares, while maintaining solid revenue growth of 4% in the last twelve months.
The firm noted that Globe Life stock currently trades at approximately 9 times 2026 estimated earnings, representing a 20% discount to its historical price-to-earnings ratio of 11-12 times.
KBW’s $162 price target is based on 10.5-11.0 times 2026 estimated earnings, with the valuation supported by Globe Life’s consistent long-term track record of growing premiums and earnings by 3-5% annually.
The investment firm identified a lack of further catalysts as the primary near-term risk for Globe Life, despite the company’s high-single-digit plus earnings per share growth, 13-15% return on equity, predictable capital return, and improving free cash flow conversion.
In other recent news, Globe Life Inc. reported its third-quarter earnings for 2025, delivering a strong performance in earnings per share (EPS) but falling slightly short on revenue expectations. The company achieved an EPS of $4.73, surpassing the forecast of $4.60. However, revenue was recorded at $1.51 billion, just below the anticipated $1.52 billion. These results highlight a mixed quarter for Globe Life, with positive earnings overshadowed by a minor revenue miss. Despite the revenue shortfall, the better-than-expected EPS indicates effective cost management or other operational efficiencies. Analysts and investors often scrutinize such earnings reports to gauge the company’s financial health and future prospects. The performance of Globe Life in this quarter is a key development for stakeholders to consider.
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