Credit Suisse Starts Unum Group (UNM) at Neutral

October 7, 2016 7:23 AM EDT
Get Alerts UNM Hot Sheet
Price: $36.24 +2.60%

Rating Summary:
    9 Buy, 9 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 25 | New: 8
Trade UNM Now!
Join SI Premium – FREE

Get access to the best calls on Wall Street with's Ratings Insider Elite. Get your Free Trial here.

Credit Suisse initiates coverage on Unum Group (NYSE: UNM) with a Neutral rating and a price target of $42.00.

Analyst John Nadel commented, "While we like the company’s positive leverage to economic improvement, specifically in terms of employment levels and wage growth, in addition to a strong track record of capital return and potential tailwinds from higher interest rates, we currently view the risk/reward as fairly balanced and devoid of sufficient near-term catalysts to get us more constructive. Separately, we provide analysis herein which leads us to believe UNM has adequate capital strength to support downside risk under the scenario of another LTC reserve charge and/or a modest recession. Our 2016/17/18E EPS are $3.87/$4.10/$4.40, respectively, and incorporate $1.2b of cumulative buybacks ($400m annually) combined with low-single-digit growth in core operating income, resulting in a flattish ROE between 10.0% and 10.5%."

For an analyst ratings summary and ratings history on Unum Group click here. For more ratings news on Unum Group click here.

Shares of Unum Group closed at $36.58 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, New Coverage

Related Entities

Credit Suisse

Add Your Comment