MetLife initiated with a Market Perform at BMO Capital

BMO Capital initiated coverage of MetLife (MET) with a Market Perform rating and $97 price target MetLife has executed on a business mix transformation and holds leading market positions across several products and geographies, notes the analyst, who believes the company can continue to exceed its recently raised guidance. However, these expectations and the company’s free cash flow characteristics “appear to be fairly reflected in its valuation,” the analyst tells investors while starting coverage of the life insurance sector. The firm also highlights some potential near-term earnings volatility.