MetLife, Inc. (NYSE:MET) has recently been identified as one of the best cheap stocks to buy for 2026. However, on January 6, Evercore ISI downgraded MetLife from Outperform to “In Line” and lowered the price target to $97 from $108. The firm also removed MetLife from its Core Ideas List, replacing it with Aflac.
Evercore cited concerns about the possibility of downside to consensus forward earnings, indicating that MetLife’s earnings expectations may weaken compared to market expectations. The firm also highlighted valuation concerns, noting that MetLife’s stock appeared relatively expensive compared to mid-cap peers. They also expressed apprehensions about low new money spreads on public corporate bonds and the higher risk commercial mortgage loan portfolio compared to peers, calling it a “double-edged sword” for the stock.
Despite these risks, Evercore acknowledged MetLife’s impressive growth in Asia and potential catalysts such as risk transfer deals. MetLife, Inc. provides insurance, annuities, employee benefits, and asset management services in the United States and international markets.
While there is potential for MetLife as an investment, Evercore believes that certain AI stocks offer greater upside potential with less downside risk. For investors seeking undervalued AI stocks that could benefit from Trump-era tariffs and the onshoring trend, a free report on the best short-term AI stock is recommended.
In conclusion, while MetLife faces challenges with its recent downgrade, the company’s growth in Asia and potential catalysts offer hope for future performance. Investors should carefully consider the risks and opportunities associated with investing in MetLife and explore other investment options in the AI sector for potentially higher returns with lower risk.
Disclosure: None. This article was originally published on Insider Monkey.
