Update shared on 27 Nov 2025
Great-West Lifeco's analyst price targets have been revised upward, with recent updates now ranging from C$59 to C$71. Analysts cite stronger growth prospects and continued expansion in retirement and wealth management segments.
Analyst Commentary
Recent Street research on Great-West Lifeco highlights a generally optimistic outlook from analysts, with several price target increases following positive trends in the company’s core segments. Commentaries focus on the firm’s capacity to sustain earnings momentum and expand its retirement and wealth management businesses. The analysis also weighs strategic opportunities and ongoing challenges impacting valuation.
Bullish Takeaways
- Bullish analysts see continued growth in retirement and wealth management driving earnings, which supports upward price target revisions.
- Upside to future earnings is anticipated as Great-West leverages asset growth and makes strategic acquisitions in the 401k and wealth platform spaces.
- Incremental improvements in business mix and successful integration of new platforms are viewed as potential catalysts for a valuation rerating over the medium term.
- The company is projected to benefit from strong sector fundamentals, which could result in attractive long-term returns for shareholders.
Bearish Takeaways
- Bearish analysts remain cautious about the pace of earnings growth, with execution risk cited as the company scales new platforms and integrates acquisitions.
- There are concerns over whether recent upward revisions to estimates might have already factored in much of the anticipated upside, which could limit further re-rating in the near term.
- Some analysts maintain a more conservative outlook, pointing to sector-wide uncertainties and the challenge of sustaining above-average asset growth.
What's in the News
- Between July 1, 2025 and November 5, 2025, Great-West Lifeco completed the repurchase of 10,278,295 shares for CAD 563 million. This brings the total repurchased shares to 18,662,858 for CAD 995 million under the ongoing buyback program (Key Developments).
- Great-West Lifeco Inc. (TSX:GWO.PRZ) was added to the S&P/TSX Preferred Share Index (Key Developments).
- Great-West Lifeco Inc. (TSX:GWO.PRT) was also added to the S&P/TSX Preferred Share Index (Key Developments).
- On September 3, 2025, the company increased its equity buyback authorization by 20,000,000 shares. This brings the total buyback capacity to 40,000,000 shares (Key Developments).
Valuation Changes
- Fair Value: Remains unchanged at CA$63.08, reflecting analyst consensus on intrinsic value stability.
- Discount Rate: Decreased marginally from 6.118% to 6.118%, indicating a slightly lower perceived risk profile.
- Revenue Growth: Unchanged at approximately 6.07%, suggesting steady expectations for top-line expansion.
- Net Profit Margin: Essentially flat, holding at 10.70%, with minimal adjustment versus prior estimates.
- Future P/E: Dropped slightly from 14.65x to 14.60x, pointing to modestly reduced forward earnings valuation.
Disclaimer
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