MetLife Inc.’s stock soared 8.1% in premarket trade Wednesday, with analysts cheering the insurer’s plan to spinoff its U.S. retail business, in an effort to fend off regulatory burden that would accompany a federal designation of “systemically important financial institution.” Credit Suisse analyst Thomas Gallagher raised his stock price target to $60 from $57, saying the company’s “bold move” creates better visibility on future capital returns. “Our bottom line on the announcement is that we think it is the right short term and long term direction for the company and is a meaningful positive for the valuation of the stock, especially at the current depressed levels,” Gallagher wrote in a note to clients. The stock, which closed Monday at the lowest level since May 2013, has tumbled 26% over the past six months, while to S&P 500 has slipped 7.7%. Deutsche Bank analyst Yaron Kinar, who said he previously thought the capital infusion required for a spinoff would make the idea too onerous, said the plan announced late Tuesday “is a positive in and of itself, as it suggests that management sees the separation as viable.”
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