Joshua Shanker, an analyst from Bank of America Securities, reiterated the Hold rating on Unum Group (UNM – Research Report). The associated price target is $85.00.
Joshua Shanker has given his Hold rating due to a combination of factors surrounding Unum Group’s recent strategic moves. The company announced a significant reinsurance transaction with Fortitude Re, aiming to de-risk its long-term care reserves, which have historically impacted its stock valuation. This move is seen as a positive step towards reducing risk, but the full benefits are expected to materialize over time, with the transaction closing later in 2025.
Additionally, Unum’s decision to enter a 20% quota-share of its individual disability portfolio further reflects its strategy to manage risk. However, these transactions are expected to result in lower premium income, which has led to a tempered EPS growth outlook. While the company’s share repurchase forecast has been raised, the overall limited upside potential compared to the price objective supports the Hold rating. The adjustments in earnings projections and the cautious outlook on benefit ratios contribute to the neutral stance on the stock.
According to TipRanks, Shanker is a 5-star analyst with an average return of 8.4% and a 60.13% success rate. Shanker covers the Financial sector, focusing on stocks such as Progressive, Metlife, and AFLAC.
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