TD Cowen has initiated coverage on shares of MetLife (NYSE: MET), assigning a Buy rating to the stock along with a price target of $97.
The firm's analyst pointed to a sum-of-the-parts analysis as the basis for the price target, which takes into account projected earnings from different product lines for the year 2025, as well as adjustments for excess capital, liability exposures, and investments.
The price target suggests a blended price-to-earnings (P/E) ratio of 9.7 times the forecasted 2025 earnings per share (EPS).
The initiation of coverage provides investors with a new assessment of MetLife's stock, reflecting the firm's positive outlook on the company's future financial performance.
MetLife's stock response to this new coverage and price target may be observed in the market, as investors and other market participants consider TD Cowen's analysis and projections. The analyst's evaluation relies on detailed financial metrics and a forward-looking assessment, which is common practice in the industry for setting expectations and valuations.
In other recent news, MetLife Inc (NYSE:MET). reported a significant 18% increase in earnings for the second quarter of 2024, reaching $1.6 billion. The company also declared a Q4 common stock dividend of $0.545 per share.
A key driver of this growth was the Group Benefits segment, which saw a 43% surge in adjusted earnings. In addition, MetLife issued an additional $250 million in Senior Notes, bringing the total to $750 million, as part of its strategy to manage capital requirements effectively.
Barclays initiated coverage on MetLife, assigning an Overweight rating, indicating the company's potential for sustained earnings growth. MetLife Investment Management announced the appointment of Jude Driscoll as its new president, expected to guide the firm's strategic direction and operations.
Furthermore, MetLife is nearing the completion of its "Next Horizon" strategy and has announced "New Frontier," a new five-year plan aimed at accelerating growth and enhancing returns.
InvestingPro Insights
TD Cowen's bullish stance on MetLife aligns with several positive indicators from InvestingPro. The company's stock is currently trading near its 52-week high, with a strong return of 20.07% over the last three months. This performance supports TD Cowen's optimistic outlook and Buy rating.
InvestingPro Tips highlight that MetLife has raised its dividend for 11 consecutive years and has maintained dividend payments for 25 consecutive years, demonstrating a commitment to shareholder returns. The current dividend yield stands at 2.62%, which may be attractive to income-focused investors.
Additionally, MetLife's P/E ratio of 22.46 is lower than the projected blended P/E of 9.7 times 2025 earnings mentioned in TD Cowen's analysis, suggesting potential upside if the company meets earnings expectations. The InvestingPro Fair Value of $83.96 is close to the current stock price, while analysts' fair value target of $89.5 indicates further room for growth, aligning with TD Cowen's $97 price target.
For investors seeking a deeper understanding of MetLife's potential, InvestingPro offers 13 additional tips, providing a comprehensive view of the company's financial health and market position.
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