The brokerage believes the stock looks favorably valued compared to rivals, after Metlife shares dropped approximately 10 percent after January. Argus reiterated its Buy rating and price objective of $54 on the company's shares, implying 9.3 times multiple of its EPS estimate of 2017.
The lead analyst believes Metlife merits increased multiple and that it has a steady dividend growth offering about 3.7 percent yield.
In a research note to clients, the brokerage said, "After poor 2Q16 results, management said that it would cut costs by 11 percent, saving $1 billion annually by 2019. Second-quarter revenue and earnings were hurt by actuarial reserve adjustments, low interest rates, global equity weakness, and a strong dollar."
The lead analyst has a positive view on the insurance service provider's initiatives globally, apart from the diversification in business. Argus pointed out that the company intends to split the retail unit through a sale, spinoff or IPO in the second half of the current year.
At time of writing, Metlife was down 0.69 percent at $42.96.
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