Deutsche Bank Starts AFLAC (AFL) at Hold
Tweet Send to a FriendGet Alerts AFL Hot Sheet
Price: $57.34 -0.74%
Rating Summary:
6 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
6 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade AFL Now!
Deutsche Bank initiates coverage on AFLAC (NYSE: AFL) with a Hold. PT $56.00.
The analyst comments, "In recent years, Aflac has reacted to market forces by partnering with banks in Japan to sell products with an asset accumulation perspective, and by working with U.S. brokers to sell group and other supplemental products. While the transitions to new distribution channels and new products have created opportunities to grow the top line, the investments and shifting business mix have resulted in margin compression.
With the derisking of the investment portfolio nearly complete, management has now turned its focus in Japan to improve yields on new money. This, along with pricing action taken on the WAYS product, should result in margin improvement starting in 2013."
The firm operating EPS forecast estimates for FY12E-FY14E are $6.55, $6.90 and $7.40, respectively - implying subdued EPS growth in spite of group-high ROEs
For an analyst ratings summary and ratings history on AFLAC click here. For more ratings news on AFLAC click here.
Shares of AFLAC closed at $51.84 yesterday, with a 52 week range of $38.14-$54.93.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The analyst comments, "In recent years, Aflac has reacted to market forces by partnering with banks in Japan to sell products with an asset accumulation perspective, and by working with U.S. brokers to sell group and other supplemental products. While the transitions to new distribution channels and new products have created opportunities to grow the top line, the investments and shifting business mix have resulted in margin compression.
With the derisking of the investment portfolio nearly complete, management has now turned its focus in Japan to improve yields on new money. This, along with pricing action taken on the WAYS product, should result in margin improvement starting in 2013."
The firm operating EPS forecast estimates for FY12E-FY14E are $6.55, $6.90 and $7.40, respectively - implying subdued EPS growth in spite of group-high ROEs
For an analyst ratings summary and ratings history on AFLAC click here. For more ratings news on AFLAC click here.
Shares of AFLAC closed at $51.84 yesterday, with a 52 week range of $38.14-$54.93.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Keryx Biopharma (KERX) Patents Strong; JPMorgan Starts at Overweight
- C.K. Cooper Starts Carrizo Oil & Gas (CRZO) at Buy
- UPDATE: UBS Starts Insmed (INSM) at Buy
Create E-mail Alert Related Categories
New CoverageRelated Entities
Deutsche Bank
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
