MetLife (MET) Stock Price Target Cut at Barclays
NEW YORK (TheStreet) -- MetLife's (MET) - Get Report stock price target was reduced to $49 from $51 at Barclays in a note released earlier today.
The firm, which has an "overweight" rating on shares of the insurer, said the valuation multiples of most life insurers have "meaningfully compressed" since Britain voted last week to exit the European Union. The consequent flight to macro quality has caused more downward pressure on interest rates, a flat yield curve, equity market weakness and a strong dollar, Barclays added.
"We anticipate another challenging quarter for the life insurers based on difficult macro conditions and weak alternative investment income," Barclays wrote.
But U.S. regulatory changes have become "less concerning," removing a negative overhang, the firm noted.
MetLife stock is flat in pre-market trading after closing at $39.83 on Thursday.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
MetLife's strengths such as its increase in net income, attractive valuation levels, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: MET
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.