Aflac Stock Gets a Boost with Analyst Ryan Krueger's Raised Price Target to $108

Aflac's (AFL) price target has been raised to $108 by analyst Ryan Krueger, representing a 1.89% increase. Analysts have varying perspectives on AFL's valuation and performance, with some maintaining "Market Perform" ratings and others adjusting price targets. The average target price is $107.83, implying a 4.17% upside from the current price of $103.52. The estimated GF Value is $85.83, suggesting a 17.09% downside from the current price.

Aflac's (AFL) stock has seen varied reactions from analysts following the company's second quarter (Q2) 2025 earnings report. Analyst Ryan Krueger of Keefe, Bruyette & Woods (KBW) recently raised the price target for AFL to $108, a 1.89% increase from the previous target of $106 [1]. This move comes amidst a mixed landscape of analyst opinions, with some maintaining "Market Perform" ratings while others have adjusted their price targets.

The average target price for AFL stands at $107.83, indicating a 4.17% upside from the current price of $103.52. However, the estimated fair value (GF Value) is $85.83, suggesting a potential 17.09% downside from the current price. These discrepancies highlight the differing views among analysts regarding AFL's valuation and performance prospects.

Aflac reported Q2 earnings that beat the Wall Street estimate, with adjusted earnings per share (EPS) of $1.78, compared to the average analyst estimate of $1.71 [2]. However, revenue fell short of expectations, primarily due to net investment losses in the current quarter. The company's adjusted book value per share decreased to $51.78 at June 30, 2025, from $51.98 at March 31, 2025, and $52.26 at June 30, 2024.

Despite weaker quarterly results, Aflac continued its shareholder return initiatives, including share repurchases totaling over $829 million and a steady dividend of $0.58 per share for the third quarter [3]. These actions reflect management's commitment to capital distribution, even in the face of declining earnings.

Investors should remain vigilant as Aflac's heavy reliance on the Japanese market poses risks, particularly from the sustained weakness in Japanese earned premiums and exposure to yen movements. The company's strategy to focus on generating profitable growth in the U.S. and Japan, along with product innovation, will be crucial in offsetting these headwinds.

In conclusion, while Aflac's Q2 earnings report showed mixed results, analysts' opinions on the company's valuation and performance remain diverse. Investors should carefully consider these varying perspectives and monitor Aflac's future growth initiatives, especially in the Japanese market, to gauge the company's long-term prospects.

References:
[1] https://www.marketscreener.com/news/keefe-bruyette-woods-hikes-price-target-on-aflac-to-108-from-106-maintains-market-perform-rati-ce7c5ed2de8fff24
[2] https://seekingalpha.com/news/4479067-aflac-q2-earnings-beat-revenue-misses-on-investment-losses
[3] https://simplywall.st/stocks/us/insurance/nyse-afl/aflac/news/is-aflacs-afl-steady-capital-returns-overshadowing-declining