11:46 AM EDT, 03/27/2026 (MT Newswires) -- CIBC Capital Markets on Friday said its base case on Great-West Lifeco's ( GWLIF ) Empower Workplace Solution shows a path to high single-digit organic earnings growth, which can be augmented to double-digit growth through new solutions and acquisitions.

In a note, analyst Paul Holden, who has an outperformer rating and $75.00 price target on the stock, says Empower is growing faster than the industry, with this growth mostly acquisition-driven. Its market share has risen from 6% in 2019 to nearly 13% at the end of 2025. Holden thinks organic asset growth of 6% per year is a reasonable assumption for Empower going forward, based on industry growth and how Empower has compared historically.

His earnings forecast to 2029 builds on a 6% annualized asset growth forecast to include ongoing fee compression, lower per unit costs and higher spread income. Holden is forecasting annual earnings growth of 9% per year, based on Empower's initiatives to grow revenue within and beyond the 401(k) administration business to include equity plan administration and college savings plans, for example.

The company has also built a successful track record of acquisitions and management is targeting more transactions. "We estimate that Empower Workplace will be generating over $400MM per year in free cash flow after paying its common shareholder dividends. Based on a targeted P/E of 7x, including cost synergies, we estimate the full deployment of excess free cash flow toward acquisitions could boost annual earnings growth to the mid-teens."

Price: 63.79, Change: -0.48, Percent Change: -0.75