FBR Capital Maintains an 'Outperform' on StanCorp Financial (SFG); 1Q11 Miss Pushes Investment Thesis to 2012
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Price: $114.97 --0%
Rating Summary:
0 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 7
Rating Summary:
0 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 7
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FBR Capital maintains an 'Outperform' on StanCorp Financial (NYSE: SFG), PT $51.
FBR analyst says, "StanCorp reported 1Q11 operating EPS of $0.76, in line with preannounced EPS of $0.75–$0.77 from two weeks ago. As we inferred from the preannouncement, operating results across the rest of the business (investment income, asset management, premiums) were solid, with the shortfall largely isolated to a farabove-normal benefit ratio in long-term disability. Based on the miss, we are lowering 2011E EPS from $5.00 to $4.45. However, our 2012E EPS of $5.50 remains unchanged. Our view is that the benefit ratio should be able to normalize by 2012. We forecast a 77.5% benefit ratio for 2012, versus the 73.6%–78.3% long-term range given by management. This view of a longer-term normalized benefit ratio makes SFG a 2012 story, and on that basis we maintain our rating."
For more ratings news on StanCorp Financial click here and for the rating history of StanCorp Financial click here.
Shares of StanCorp Financial closed at $43.05 yesterday.
FBR analyst says, "StanCorp reported 1Q11 operating EPS of $0.76, in line with preannounced EPS of $0.75–$0.77 from two weeks ago. As we inferred from the preannouncement, operating results across the rest of the business (investment income, asset management, premiums) were solid, with the shortfall largely isolated to a farabove-normal benefit ratio in long-term disability. Based on the miss, we are lowering 2011E EPS from $5.00 to $4.45. However, our 2012E EPS of $5.50 remains unchanged. Our view is that the benefit ratio should be able to normalize by 2012. We forecast a 77.5% benefit ratio for 2012, versus the 73.6%–78.3% long-term range given by management. This view of a longer-term normalized benefit ratio makes SFG a 2012 story, and on that basis we maintain our rating."
For more ratings news on StanCorp Financial click here and for the rating history of StanCorp Financial click here.
Shares of StanCorp Financial closed at $43.05 yesterday.
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