Wells Fargo Raises Aflac Target to $118, Shifts to 2028 EPS Projections
Wells Fargo raised its price target on Aflac to $118 from $109 and maintained an Equal Weight rating while shifting its valuation model to include 2027 and 2028 EPS projections. Aflac reported Q4 net earnings of $2.64 per share, saw Japan sales rise 15.7%, and approved a 5.2% dividend increase.
1. Price Target and Rating Update
Wells Fargo lifted its price target on Aflac from $109 to $118 and reiterated an Equal Weight rating. The firm cited sector-wide guidance revisions and is now extending its valuation framework to incorporate EPS forecasts through 2027 and 2028.
2. Revised Earnings Outlook and Valuation Approach
After reviewing fourth-quarter guidance, Wells Fargo lowered its EPS estimates across multiple insurers and is updating its long-term outlook by modeling 2027 earnings and introducing 2028 projections. This shift aims to align valuation metrics with evolving sector dynamics.
3. Q4 2025 Results and Capital Returns
In the fourth quarter, Aflac posted net earnings of $2.64 per diluted share and saw Japan sales grow 15.7%. The board approved a 5.2% dividend increase and the company repurchased $3.5 billion of shares after returning $4.7 billion in capital in 2025.