Globe Life (GL) PT Lowered to $118 at CFRA

CFRA analyst Catherine Seifert lowered the price target on Globe Life (NYSE: GL) to $118.00 (from $136.00) while maintaining a Hold rating.

The analyst comments "We lower our 12-month target price by $18 to $118, valuing GL shares at 10.3x our 2024 operating EPS estimate of $11.50 and at 9.6x our 2025 operating EPS estimate of $12.25, versus their one-year average forward multiple of 10.4x and a peer average of 8.5x. We expect GL to post operating revenue growth of 4%-6% in 2024 and 3%-7% in 2025, just slightly above industry averages. Life premiums rose by 3.6% in 2023, and we see growth of 4%-7% in 2024; however, if GL's middle income target market continues to feel inflationary pressures, sales of life insurance could suffer as these consumers react to inflationary pressures and rising auto insurance costs. Health premiums rose 2.8% in 2023, and we see growth of 3%-5% in 2024 amid increased competition. Weighing GL's below-peer risk profile given the "plain vanilla" nature of many of its products, with the shares' premium valuation versus peers, we view the shares as fairly valued."

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