Wells Fargo Raises Aflac (AFL) Target, Revises Earnings Outlook and Valuation Approach

Core Insights - Aflac Incorporated (NYSE:AFL) is recognized as one of the 14 Best Affordable Dividend Stocks to buy according to analysts [1] - Wells Fargo analyst Elyse Greenspan raised the price target for Aflac to $118 from $109 while maintaining an Equal Weight rating, reflecting a shift in valuation approach and updated EPS estimates for 2027 and 2028 [2] Financial Performance - In Q4 2025, Aflac reported net earnings of $2.64 per diluted share and adjusted earnings of $1.57 per diluted share, indicating strong financial performance [3] - Aflac Japan experienced a sales increase of 15.7% in Q4 and 16% for the full year, driven by the success of the Miraito cancer insurance product, which saw a 35.6% sales increase [3] - Aflac U.S. generated nearly $1.6 billion in new sales in 2025, with over one-third of that amount coming in Q4 [4] Strategic Initiatives - The company emphasized a focus on profitable growth, careful underwriting, and disciplined expense management, with a premium persistency rate of 79.2% [4] - Aflac's board approved a 5.2% dividend increase for Q1 2026, and in 2025, the company returned significant capital to shareholders, including $3.5 billion for share repurchases and $1.2 billion in dividends [4] Business Overview - Aflac Incorporated provides supplemental health and life insurance in the U.S. and Japan, offering financial protection to policyholders [5]