Aflac (AFL) Caught with Hand in Europe's Cookie Jar but Conditions Improving

Shares of Aflac (NYSE: AFL) have decline 22 percent since February of 2011, notes a weekend article in Barron’s. The selloff is tied in part to Aflac's investments in Europe, but the company has spent a lot of effort de-risking, and as a result the stock's cheap valuation could offer an entry point, according to analyst Thomas Weary, chief investment officer of money-manager Lau Associates.

"Every time Europe sneezes, Aflac stock catches cold," said Weary. However, the analyst also noted that "the company's made a lot of headway on de-risking Europe." This combined with increased need for supplemental insurance in places like Japan, where Aflac focuses much of its business, could help the insurer and the stock get back to the green.

A multiple of 9 is a reasonable valuation for Aflac, says Weary, which would increase the stock’s value to $60 per share or 30 percent. Those are returns that even Scrooge McDuck would appreciate (Note: mandatory duck joke.)

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