Update shared on15 Oct 2025
Fair value Increased 1.39%Narrative Update: Great-West Lifeco Price Target Increased
Analysts have raised their price target for Great-West Lifeco from C$59 to C$61, reflecting updated fair value estimates and continued optimism about the company’s outlook.
Analyst Commentary
Bullish Takeaways
- Bullish analysts have increased their price target, attributing this to improving fundamentals and updated fair value estimates.
- There is a continued expectation for robust earnings growth, which supports the thesis of long-term value creation.
- Optimism remains about the company’s ability to execute on its strategic initiatives and effectively navigate the market environment.
- The consistent Outperform rating highlights confidence in the company’s growth prospects compared to peers.
Bearish Takeaways
- Some concerns persist regarding the potential impact of broader macroeconomic volatility, which could affect profitability.
- Analysts note that execution risks remain, particularly as the company scales new initiatives and enters more competitive segments.
- Valuation now reflects much of the recent optimism, so upside may be more limited without additional positive catalysts.
What's in the News
- On September 3, 2025, Great-West Lifeco increased its equity buyback authorization by 20,000,000 shares to a total of 40,000,000 shares. (Company announcement)
- During its second quarter 2025 results call, leadership reaffirmed openness to M&A, particularly in the U.S. workplace segment. The company also noted that medium-term financial objectives are not dependent on acquisitions. (Company conference call)
- From April 1 to June 30, 2025, the company repurchased over 6.26 million shares for CAD 321 million, bringing the total for the current buyback to over 8.38 million shares at CAD 432 million. (Company disclosure)
Valuation Changes
- Fair Value Estimate has risen slightly from CA$55.73 to CA$56.50.
- Discount Rate remains unchanged at 5.97%.
- Revenue Growth projections are stable and virtually unchanged at 5.83%.
- Net Profit Margin forecast has decreased modestly from 10.34% to 10.11%.
- Future P/E Ratio expectation has increased from 14.40x to 14.95x.
Disclaimer
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