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MET: Retirement Income Agreements Will Drive Future Upside In Earnings Power

Digital Expansion And Employee Support Benefits Will Drive Outperformance Ahead

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MET
AnalystConsensusTarget
Not Invested
Published 06 Aug 2024

Update shared on 16 Dec 2025

Fair value Decreased 0.077%
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Analysts have marginally reduced their price target on MetLife to approximately 92.93 dollars from 93 dollars, citing a slightly higher assumed discount rate. This more than offsets modest improvements in forecast profit margins and valuation multiples.

What's in the News

  • MetLife fully completed a $3.0 billion share repurchase program announced on May 1, 2024, buying back a total of 37.6 million shares, or 5.45 percent of outstanding shares. This included 49,311 shares for $3.86 million repurchased between July 1 and July 31, 2025 (company filing).
  • The company repurchased 8.18 million shares, or 1.23 percent of outstanding shares, for $647.62 million from July 1 to October 31, 2025, fully completing a separate buyback authorized on April 30, 2025 (company filing).
  • MetLife and Alight announced a strategic collaboration to integrate MetLife institutional income annuities into the Alight Worklife platform. This will offer defined contribution participants access to guaranteed retirement income solutions such as MetLife Guaranteed Income fixed immediate annuities and Retirement Income Insurance QLACs (company announcement).
  • MetLife and Empathy formed a strategic alliance to launch Leave Support, a digital platform that guides employees through the emotional, practical and administrative aspects of taking and returning from a leave of absence, complementing MetLife My leave Navigator (company announcement).

Valuation Changes

  • The fair value estimate has edged down slightly to approximately 92.93 dollars from 93.00 dollars, reflecting a modestly more conservative valuation.
  • The discount rate has risen slightly to about 7.68 percent from 7.46 percent, increasing the assumed cost of capital applied to future cash flows.
  • Revenue growth has eased marginally to roughly 5.62 percent from 5.66 percent, indicating a slightly more tempered top line outlook.
  • The net profit margin has improved modestly to around 7.66 percent from 7.53 percent, reflecting expectations for better underlying profitability.
  • The future P/E has increased slightly to about 10.66 times from 10.35 times, suggesting a small expansion in the valuation multiple applied to forward earnings.

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Disclaimer

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