Aflac price target lowered to $102 from $104 at Evercore ISI

Evercore ISI lowered the firm’s price target on Aflac (AFL) to $102 from $104 and keeps an Underperform rating on the shares following the investor day. The firm views part of the Aflac guidance for 2025-2027 as conservatism as it doesn’t assume any favorability of reserving development, which it expects to continue. However, the weaker margin guide in the U.S. is driven largely by a product mix shift that will impact results, and a slightly softer net interest income outlook in 2025 is also an incremental headwind, the analyst tells investors in a research note. Evercore believes Aflac’s strength of capital and reserves “continues to provide plenty of flexibility” and positions the company well if we enter a more challenging market environment.