MetLife (MET): Raising PT On Retail Separation - FBR
- Wall St. set to open lower, weighed down by GE
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
- General Electric (GE) Tops Q3 EPS by 2c; Updates FY16 EPS Outlook
- Microsoft (MSFT) Tops Q1 EPS by 8c
- Pre-Open Stock Movers 10/21: (ALKS) (RAI) (PFPT) (MSFT) Higher; (SGY) (TWLO) (RRGB) Lower (more...)
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
FBR Capital analyst, Randy Binner, reiterated his Outperform rating on shares of MetLife (NYSE: MET) after hosting investor meetings with management. We continue to see the retail business separation, likely in 1Q17, as a favorable catalyst that moves our price target to $54 from $51.
The analyst stated "The retail separation story will unfold this fall as we see the S-1 in late September, restated financials ahead of 3Q16 earnings, and the November investor meeting. This fall, expect a legal/regulatory catalyst around the federal appeal of the MET v. FSOC case. At this point, we think this issue has asymmetric upside, given MET’s –13% performance YTD compared to peers at –5%. Separately, it appears that the 2Q16 annuity charge was taken to set up the retail separation, and we think operating results in 2H16 should be more stable. At 79% of BV ex-AOCI and with sentiment on lifecos clearly negative, we think the overall setup is good. However, with the execution of the separation and the beginning of a $1 billion expense reduction (11% of total) in 2017, MET is also becoming more of a 2018 story."
Even though MET is becoming more of a 2018 story, the analyst raised his price target to $54 from $51.
Shares of MetLife closed at $41.79 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Upgrades PayPal (PYPL) to Buy Following 'Solid' Q3 Results
- KLA-Tencor (KLAC) PT Raised to $85 at Cowen
- Jefferies Cuts Price Target on Boston Beer Co. (SAM) to $140 Following Weak 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesS1, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!