On Wednesday, Evercore ISI adjusted its price target on shares of Unum Group (NYSE: NYSE:UNM), increasing it to $59.00 from the previous target of $58.00, with the firm maintaining its "In Line" rating for the insurance company's stock.
The revision follows the company's recent earnings report, which led Evercore ISI to slightly raise its forward earnings estimates. An analyst from Evercore ISI cited several factors contributing to the improved outlook, including higher earnings for group life insurance, a somewhat better performance from the closed block, and an increased level of share repurchases.
During the upcoming earnings call, attention is expected to be directed toward the competitive landscape that Unum Group is experiencing in the group benefits market. The analyst anticipates that the call will explore whether pricing pressures might arise, potentially affecting what have been strong results in the group disability segment.
Unum reported a notable 13.6% increase in earnings per share and a 6.6% rise in core operations premium growth in the first quarter of 2024. To further enhance shareholder value, the company plans to increase its dividend by 15% and double its share repurchase program to $500 million annually.
Piper Sandler, in its recent analysis, has shown a positive outlook for Unum Group, initiating coverage with an Overweight rating. The firm emphasizes Unum Group's focus on underwriting, which they believe exhibits robust growth potential. Piper Sandler's valuation approach for Unum Group considers a longer-term perspective, highlighting the company's successful integration with human resources platforms and the increase in free cash flow conversion amid a climate of higher interest rates.
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