SPY376.70-4.72 -1.24%
DIA309.58-3.41 -1.09%
IXIC12,723.47-274.28 -2.11%

Research Alert: CFRA Keeps Hold Opinion On Shares Of Unum Group

· 02/05/2021 12:29

05:25 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 of $26, or 5.4x our 2021 operating EPS estimate of $4.85 (cut today by $0.20) and 4.8x our newly initiated 2022 operating EPS estimate of $5.45, versus the shares' 3-year average forward multiple of 5.6x and a peer average of 8.3x. Q4 reported EPS of $1.15 versus $1.41 was in line with our $1.16 estimate and the $1.19 consensus forecast. Full-year 2020 reported EPS of $4.93 versus $5.44 was in line with our $4.95 EPS estimate, the $4.98 consensus forecast. But these results excluded the impact of reserve boosts that drove a 78% rise in Q4 benefit and reserve costs. Including these results produced Q4 EPS of $0.65 versus $1.40 and full-year 2020 EPS of $4.29 versus $5.33. We expect operating revenues to be flat to down 2% in 2021 and to rise by 1% to 2% in 2022. Weighing the company's deeply discounted valuation versus peers against its ongoing pressures (made worse by Covid-19 and a low interest rate environment), we think the shares (currently yielding 4.9%) are fairly valued.