Unum Group (NYSE:) Gets Price Target Increase by Evercore ISI to $59.00 - Here's Why You Should Pay Attention
Evercore ISI has raised its price target on Unum Group to $59.00, with a "In Line" rating, following the company's recent earnings report. The firm cited higher earnings for group life insurance, improved performance from the closed block, and increased share repurchases as factors contributing to the positive outlook.
During the upcoming earnings call, Unum Group will address the competitive landscape in the group benefits market. Analysts are keen to see if pricing pressures could impact the strong results in the group disability segment.
Unum Group reported a 13.6% increase in earnings per share and a 6.6% rise in core operations premium growth in the first quarter of 2024. The company plans to enhance shareholder value by increasing its dividend by 15% and doubling its share repurchase program to $500 million annually.
Piper Sandler has initiated coverage on Unum Group with an Overweight rating, highlighting the company's focus on underwriting and growth potential. The valuation approach considers the successful integration with human resources platforms and increased free cash flow conversion in a higher interest rate environment.
In summary, Evercore ISI's price target increase and positive outlook from Piper Sandler indicate a promising future for Unum Group. Investors should keep an eye on the upcoming earnings call and developments in the group benefits market to make informed decisions about their investments.