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Research Alert: CFRA Keeps Hold Opinion On Shares Of Aflac Incorporated

· 02/05/2021 11:08

04:05 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target price of $48, or 10x our 2021 operating EPS estimate of $4.80 and 9.7x our 2022 operating EPS estimate of $4.95 (raised today by $0.10), versus the shares' 10-year average forward multiple of 9.8x and a peer average of 7.5x. Q4 operating EPS of $1.05 versus $1.03 was in line with our operating EPS estimate and the consensus forecast of $1.04. Full-year 2020 operating EPS of $4.92 versus $4.44 matched our $4.92 EPS estimate and is in line with the $4.90 consensus EPS forecast. Results in both periods reflected mixed trends, as 5.5% higher Q4 revenues (on improved investment results) were partly offset by 10.4% higher operating expenses, while full-year 2020 revenues declined by 0.7% on 1% lower U.S. premiums, offset by 0.5% higher premiums in Japan (driven by a 2.1% stronger yen). We see demand for AFL's workplace-based products remaining under pressure in 2021, and think the shares, currently trading at a 25% premium to peers, as fairly valued and lacking a near-term catalyst.