AFLAC (AFL) PT Raised to $120 at CFRA

CFRA analyst Catherine Seifert raised the price target on AFLAC (NYSE: AFL) to $120.00 (from $112.00) while maintaining a Hold rating.

The analyst comments "We raise our 12-month target price by $8 to $120, valuing AFL shares at 15.4x our newly initiated 2027 operating EPS view of $7.80 and 16.3x our 2026 operating EPS view (up $0.15), versus their three-year average forward multiple of 14x and peer average of 8.2x. We raise our 2025 EPS estimate by $0.76 to $7.59. Q3 EPS of $2.49 (vs $2.16 last year) bested our $1.73 estimate and the consensus view of $1.78. Operating revenues rose 2.5% to $4.5B on 1.3% premium growth and 6.1% higher net investment income, while margins benefited from a 10% drop in total benefits and expenses. The improved underwriting drove operating ROE to 19.1% from 16.7%, supporting AFL's premium valuation vs peers given its historically superior ROE performance. But sales trends were mixed, with Japan up 11.8% on strong core life insurance and new cancer product acceptance, while U.S. growth of 2.8% mainly reflected group products. We view the shares (currently trading at 15.5x our 2026 EPS estimate) as fairly valued."

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