Morgan Stanley analyst Bob Huang maintained a Hold rating on Globe Life (GL – Research Report) today and set a price target of $133.00.
Bob Huang has given his Hold rating due to a combination of factors relating to the current challenges faced by Globe Life. The stock has encountered significant downward pressure following allegations by a short seller, which has led to a drop in the share price and could pose a persistent obstacle through 2024 and 2025. Moreover, the ongoing Department of Justice probe into American Income Life (AIL), a key subsidiary of Globe Life, represents a critical factor that could influence the company’s sales and overall business performance. The potential disruption in AIL’s sales is particularly concerning given its substantial contribution to Globe Life’s operations.
Despite these challenges, Globe Life is expected to maintain its capital-efficient business model, provided there are no significant setbacks in sales. Huang is closely monitoring the evolution of the DOJ investigation, recognizing that its outcomes could range widely and, consequently, affect the future performance of the company. Given this uncertainty and the gravity of the situation, Huang has indicated that both the rating and the price target for Globe Life are under review, signaling a cautious approach until there is more clarity regarding the implications of the ongoing legal issues.
Huang covers the Financial sector, focusing on stocks such as Progressive, Allstate, and Brighthouse Financial. According to TipRanks, Huang has an average return of 1.0% and a 61.11% success rate on recommended stocks.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $122.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Globe Life (GL) Company Description:
Globe Life, Inc. is a holding company, which engages in the provision of individual life and supplemental health insurance products and services. It operates through the following segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. The Life Insurance segment includes traditional and interest-sensitive whole life insurance as well as term life insurances. The Supplement Health Insurance segment provides generally guaranteed-renewable and include medicare supplement, critical illness, accident, and limited-benefit supplemental hospital, and surgical coverage. The Annuities segment refers to fixed-benefit contracts. The Investments segment covers the investment portfolio. The company was founded on November 19, 1979 and is headquartered in McKinney, TX.
