Globe Life denied being subject of SEC investigation, says JPMorgan

JPMorgan keeps an Overweight rating on Globe Life with a $136price target after hosting meetings with management. The firm says the meetings affirmed its bullish stance on the shares. Management discussed various allegations in recent short reports and its commentary on business trends was positive, the analyst tells investors in a research note. JPMorgan forecasts Globe to report “healthy” operating results and an acceleration in share repurchases in the next few quarters. Nonetheless, business trends are less critical for the stock in the near term than regulatory and legal developments, the firm adds. It notes that contrary to short seller insinuations, management denied being subject to an SEC investigation. Also, the Justice Department subpoenas sought information on certain American Income Life agents and Globe Life has no indications that the company itself is under investigation, says JPMorgan.