TD Cowen reaffirms Buy rating on Globe Life stock as DoJ ends inquiry

Published 29/07/2025, 17:28
TD Cowen reaffirms Buy rating on Globe Life stock as DoJ ends inquiry

Investing.com - TD Cowen has maintained its Buy rating and $182.00 price target on Globe Life (NYSE:GL) after the Department of Justice concluded its inquiry into sales practices with no enforcement action. The company maintains a "GREAT" overall financial health score according to InvestingPro analysis, with particularly strong marks in profitability and price momentum.

The DoJ notified Globe Life on Monday that it had completed its investigation into sales practices of a group of agents without taking any enforcement action, according to TD Cowen analyst commentary.

This development follows Globe Life’s July 24 disclosure that the Securities and Exchange Commission had ended its separate inquiry related to allegations in an April 2024 short seller report.

Globe Life stock has risen 7-8% since July 23, 2025, following strong second-quarter earnings and the resolution of the SEC inquiry, yet continues to trade at a 25% discount to its historical average price-to-earnings ratio from January 2018 to March 2025.

TD Cowen recently raised its price target to $182, implying a 12x multiple on 2026 estimated earnings per share and reflecting 36% upside potential from the current stock price.

In other recent news, Globe Life Inc. reported mixed financial results for the second quarter of 2025. The company achieved an earnings per share of $3.27, slightly surpassing the forecast of $3.25. However, revenue came in at $1.48 billion, falling short of the expected $1.51 billion. In regulatory developments, the U.S. Department of Justice closed its investigation into Globe Life’s sales practices without taking enforcement action, ending a period of uncertainty for the company. Following this, Keefe, Bruyette & Woods raised its price target for Globe Life to $160, maintaining an Outperform rating. Additionally, CFRA upgraded Globe Life’s stock rating to Buy from Hold, citing the conclusion of an SEC investigation as a catalyst for potential growth. These recent developments indicate a shift in the regulatory landscape for Globe Life, providing a clearer path forward.

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