Rising Interest Rates Positive for Insurance Space, Deutsche Bank Upgrades Lincoln National (LNC) to Buy
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Price: $28.43 -1.04%
Rating Summary:
2 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
2 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Deutsche Bank sees improvement in the insurance space and upgraded Lincoln National (NYSE: LNC) from Hold to Buy with a price target of $45.00 (from $36.00). Deutsche Bank also raised its price target on MetLife, Inc. (NYSE: MET) and Principal Financial Group Inc. (NYSE: PFG), both Buy-rated. Hold-rated AFLAC Inc. (NYSE: AFL), Principal Financial Group Inc, and Unum Group (NYSE: UNM) also saw price target increases.
"On the one hand, disappointing economic indicators over the summer would suggest a continuation of QE by the Fed, which should result in an equity market rally from which the high-beta group benefits. On the other hand, stronger economic results suggest QE tapering by the Fed and ensuing rising rates, which benefit insurers. Still, with ISM data still lagging market moves and with DB’s quant team’s daily VRP (a risk appetite indicator) turning negative in recent days), we believe that there may be more attractive entry points after the group’s earnings begin," said analyst Yaron Kinar.
Regarding Lincoln, he said, "We are upgrading LNC to a BUY from Hold in view of: (1) decreased risk of balance sheet impairment in an improving rate environment and (2) abating headwinds from platform investments. It also fits within our positioning parameters, whereby we prefer interest-sensitive names with less international exposure and with less fixed income AUM-driven fees."
For an analyst ratings summary and ratings history on Lincoln National click here. For more ratings news on Lincoln National click here.
Shares of Lincoln National closed at $39.86 yesterday.
"On the one hand, disappointing economic indicators over the summer would suggest a continuation of QE by the Fed, which should result in an equity market rally from which the high-beta group benefits. On the other hand, stronger economic results suggest QE tapering by the Fed and ensuing rising rates, which benefit insurers. Still, with ISM data still lagging market moves and with DB’s quant team’s daily VRP (a risk appetite indicator) turning negative in recent days), we believe that there may be more attractive entry points after the group’s earnings begin," said analyst Yaron Kinar.
Regarding Lincoln, he said, "We are upgrading LNC to a BUY from Hold in view of: (1) decreased risk of balance sheet impairment in an improving rate environment and (2) abating headwinds from platform investments. It also fits within our positioning parameters, whereby we prefer interest-sensitive names with less international exposure and with less fixed income AUM-driven fees."
For an analyst ratings summary and ratings history on Lincoln National click here. For more ratings news on Lincoln National click here.
Shares of Lincoln National closed at $39.86 yesterday.
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