Deutsche Bank Starts Unum Group (UNM) at Buy

January 8, 2013 5:52 PM EST
Get Alerts UNM Hot Sheet
Price: $44.79 --0%

Rating Summary:
    7 Buy, 11 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Deutsche Bank initiates coverage on Unum Group (NYSE: UNM) with a Buy. PT $25.00.

The firm comments, "Unum is active in the disability and supplemental worksite markets, which are, for the most part, less interest-rate sensitive. U.S. disability and U.K.
group life claims experience has been above expectations over the last two years, which has led the company to begin to increase pricing last year. Pricing cycles last 2-3 years, so we would expect pricing-oriented margin momentum through 2014, back-weighted." The firm also said the market is pricing in $1.4 billion in impairments and they believe that the fear is overblown. "The $800 million delta between our worst-case estimate and consensus suggests 10% upside to book valuation," they said.

The firm's operating EPS forecast estimates for FY12E-FY14E are $3.10, $3.25 and $3.65, respectively – as they believe that earnings growth will become more pronounced in 2014.

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 $21.77 yesterday.

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