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Investing.com - BMO Capital lowered its price target on MetLife (NYSE:MET) to $82.00 from $90.00 on Wednesday, while maintaining a Market Perform rating on the insurance company’s stock. According to InvestingPro data, MetLife, currently valued at $51.19 billion by market cap, appears undervalued based on comprehensive Fair Value analysis.
The price target reduction reflects BMO’s downward revision of MetLife’s forward earnings per share (EPS) run-rate by approximately 4% to $8.69 for 2025 and $10.25 for 2026. The stock currently trades at a P/E ratio of 12.95x, which InvestingPro analysis suggests is attractive relative to its near-term earnings growth potential.
BMO attributed the earnings revisions to lower projected performance in Group Benefits, Retirement and Income Solutions (RIS), and Asia earnings, though these reductions were partially offset by an improved outlook for Latin America and EMEA operations.
The firm introduced a 2027 EPS estimate of $11.48 for MetLife, representing approximately 12% year-over-year growth, with about 6% coming from earnings improvements and 6% from share buybacks.
BMO’s new $82 price target is based on free cash flow regression analysis and represents approximately 1.5 times adjusted book value excluding accumulated other comprehensive income and about 8 times the firm’s 2026 EPS estimate.
In other recent news, MetLife Inc. reported its Q2 2025 earnings with adjusted earnings of $1.4 billion, or $2.20 per share. This represents a 16% decline compared to the previous year and fell short of analysts’ expectations of $2.15 per share, resulting in a 6.05% negative surprise. The company’s revenue for the quarter was $17.92 billion, which also missed the projected $18.55 billion by 3.4%. Evercore ISI subsequently lowered its price target for MetLife from $110 to $108, while maintaining an Outperform rating. The firm highlighted disappointing results in MetLife’s group benefits segment but noted potential recovery in non-medical health margins by the second half of 2025. Dental recovery seems to be progressing, although elevated disability claims were linked to specialty markets rather than the core business. These developments have been pivotal for investors keeping an eye on MetLife’s financial trajectory.
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