On Friday, Piper Sandler confirmed its Overweight rating on CNO Financial Group (NYSE:NYSE:CNO) with a steady price target of $37.00. The firm highlighted CNO's strong positioning within the life insurance sector, noting several factors contributing to its positive outlook. The distribution network for CNO has seen a revival, supported by both recruitment trends and a broader, secular demand tailwind.
The analyst from Piper Sandler also pointed out that CNO's liability portfolio is not overly concentrated in legacy liabilities, which could be seen as a positive in the current market environment. Additionally, CNO's expense structure could see benefits from recent strategic actions taken by the company.
Further strengthening the case for CNO Financial Group, the analyst mentioned that with the company nearly a year after establishing CNO Bermuda, it would not be surprising to see it working on subsequent initiatives for the entity. This move could potentially enhance the company's growth trajectory and operational efficiency.
Lastly, the valuation of CNO Financial Group was described as attractive, especially in a segment of the life insurance market that is experiencing consolidation and heightened interest in owned distribution channels.
InvestingPro Insights
Adding to the optimism from Piper Sandler, InvestingPro data and tips further illuminate the financial health and performance of CNO Financial Group. The company's management has been actively repurchasing shares, signaling confidence in the business. Additionally, CNO Financial has a track record of raising its dividend, with a history of 12 consecutive years of increases, underscoring its commitment to returning value to shareholders.
From a valuation perspective, CNO Financial is trading at a low P/E ratio of 8.29, which is attractive relative to its near-term earnings growth potential. The company's PEG ratio, which stands at a mere 0.14 as of the last twelve months ending Q2 2024, suggests that the stock may be undervalued considering its growth rate. Moreover, with a robust revenue growth of 11.08% over the same period, CNO demonstrates a strong financial performance.
InvestingPro Tips also highlight that analysts have revised their earnings estimates upwards for the upcoming period, and the company is expected to remain profitable this year. For investors seeking additional insights, there are over 9 more InvestingPro Tips available, offering a deeper dive into CNO Financial's prospects.
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