Update shared on 13 Nov 2025
Fair value Increased 7.25%Analysts have raised their price targets for Great-West Lifeco, with updated valuations moving higher by several Canadian dollars per share. Recent research highlights the company’s growing earnings forecasts and improved outlook, supported by expanding revenue and profit margins.
Analyst Commentary
Analyst research on Great-West Lifeco reflects both optimism and some caution, as recent updates reveal shifts in valuation and expectations for future growth.
Bullish Takeaways
- Bullish analysts are raising price targets for Great-West Lifeco, reflecting a more favorable view of the company’s growth trajectory.
- There is an expectation of over 8% upside to 2026 EPS, driven by continued growth in Retirement and Wealth assets under management.
- Analysts see strategic acquisitions, such as expanding into 401k platforms and transitioning retirees onto the company’s wealth platform, as catalysts for further re-rating and expansion.
- Sustained revenue growth and improving profit margins are strengthening analyst confidence in the company’s ability to deliver on long-term earnings targets.
Bearish Takeaways
- Bearish analysts remain cautious about the sector’s overall performance. While forecasts have improved, they still recommend a neutral position for some investors.
- Concerns persist around the pace and successful execution of strategic initiatives, such as asset transitions and acquisitions.
- Some analysts highlight market volatility and integration risks as potential headwinds that could impact the consistency of earnings growth.
What's in the News
- The company completed the repurchase of 18,662,858 shares, totaling 2% of shares outstanding for CAD 995 million as part of the buyback announced in January 2025 (Key Developments).
- Between July and November 2025, 10,278,295 shares were repurchased, representing 1.1% for CAD 563 million (Key Developments).
- Great-West Lifeco Inc. (TSX:GWO.PRZ) and (TSX:GWO.PRT) were both added to the S&P/TSX Preferred Share Index in mid-2025 (Key Developments).
- The buyback authorization was increased by 20,000,000 shares, bringing total authorization to 40,000,000 shares as announced on September 3, 2025 (Key Developments).
Valuation Changes
- Fair Value Estimate has risen moderately, increasing from CA$58.82 to CA$63.08 per share.
- Discount Rate has inched up slightly, moving from 5.97% to 6.12%.
- Revenue Growth projections have strengthened, up from 5.83% to 6.07% annually.
- Net Profit Margin is forecast to improve modestly, from 10.47% to 10.70%.
- Future P/E Ratio is expected to decline moderately, from 15.02x to 14.65x.
Disclaimer
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