MetLife stock price target lowered to $108 at Evercore ISI on mixed outlook

Investing.com - Evercore ISI has reduced its price target on MetLife (NYSE:MET) to $108.00 from $110.00 while maintaining an Outperform rating on the insurance giant. Currently trading at $73.82 with a P/E ratio of 12.51, InvestingPro analysis suggests the stock is undervalued, with multiple indicators pointing to strong financial health.

The firm cited disappointing results in MetLife’s group benefits segment, though it noted the company provided a "credible defense" for why non-medical health margins should recover in the second half of 2025. Dental recovery appears to be underway, while some elevated disability claims were attributed to specialty markets rather than core business. With a perfect Piotroski Score of 9 and strong return metrics, InvestingPro data shows MetLife maintains robust fundamentals despite these temporary challenges.

Evercore ISI also highlighted that MetLife’s Retirement & Income Solutions (RIS) segment will experience a lower run rate due to the Chariot Re transaction and reduced seasonal net investment income from Hotel commercial mortgage loans, though base spreads have reportedly stabilized.

The research firm acknowledged investor concerns about MetLife’s Asia segment, which showed softer-than-expected performance with lower surrender fees and weaker underwriting. However, Evercore ISI noted encouraging revenue and sales trends that suggest positive momentum for the business heading into 2026.

While Evercore ISI’s 2026 estimates for Asia and RIS fall below consensus, its more optimistic outlook on group benefits and holdings segments leaves its overall earnings per share projection only marginally below Street expectations for 2026. The company has maintained dividend payments for 26 consecutive years and currently offers a 3.08% yield. For deeper insights into MetLife’s valuation and growth prospects, including access to 10+ additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, MetLife Inc. reported its Q2 2025 earnings, which revealed a decline in financial performance. The company announced adjusted earnings of $1.4 billion, or $2.20 per share, marking a 16% decrease compared to the previous year. These earnings per share fell short of analysts’ expectations, which had projected $2.15, resulting in a negative surprise of 6.05%. Additionally, MetLife’s revenue for the quarter was $17.92 billion, missing the forecasted $18.55 billion by 3.4%. These results highlight the challenges the company faced during the quarter. The earnings miss and lower-than-expected revenue figures were significant developments for investors. Analyst firms had anticipated a different financial outcome, and the results are likely to impact future assessments.

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