On Wednesday, Truist Securities adjusted its outlook on Globe Life (NYSE:GL), lowering the stock price target to $80 from the previous target of $125. The firm has decided to maintain a Hold rating on the stock. The revision follows an evaluation of the company's increased guidance for share repurchases and excess investment income.
The securities firm has raised its earnings per share (EPS) estimate for Globe Life for the year 2024 to $11.70, up from the prior estimate of $11.55. This increase is attributed to the company's updated guidance which includes expectations for higher share repurchases and additional investment income. Furthermore, the EPS estimate for 2025 has been boosted to $12.55 from the earlier forecast of $12.35.
The decision to lower the price target is based on an assumed multiple of 7 times the 2025 EPS estimate. The analyst at Truist Securities has indicated that the new price target is a reflection of the current valuation of Globe Life shares.
The maintained Hold rating suggests that the analyst believes Globe Life shares are currently valued appropriately in the market. The updated estimates and stock price target represent the latest expectations from Truist Securities regarding the performance and valuation of Globe Life.
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