Great-West Lifeco stock initiated with Buy rating at UBS on growth outlook

Published 16/10/2025, 15:56
Great-West Lifeco stock initiated with Buy rating at UBS on growth outlook

Investing.com - Great-West Lifeco Inc (TSE:GWO) (OTC:GWLIF) received a Buy rating from UBS as the firm initiated coverage on the insurance company with a price target of C$71.00.

UBS views Great-West Lifeco as "one of the few clear growth stories in NA life insurance" and forecasts more than 8% upside to consensus 2026 EPS, driven by current Retirement and Wealth AUM growth and potential re-rating as the company acquires 401k platforms.

The research firm highlighted Great-West’s "ambitious inorganic growth strategy," noting the company has over C$2 billion in holdco cash and more than C$10 billion in group liquidity available for acquisitions and growth initiatives.

UBS pointed out that Great-West has already deployed significant capital into US growth since 2020, increasing US earnings contribution from 10-15% to 30-35%, with expectations this could approach 50% "over the foreseeable future."

The firm believes the market is undervaluing Great-West’s growth capacity and its ability to convert Empower customers to wealth/advisory services upon retirement, which could drive an incremental re-rating as US wealth comparables are valued around 13-15x 2026 estimated P/E.

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