Elyse Greenspan, an analyst from Wells Fargo, maintained the Buy rating on Unum Group (UNM – Research Report). The associated price target was raised to $97.00.
Elyse Greenspan has given her Buy rating due to a combination of factors influencing Unum Group’s stock. Despite a weaker first quarter and a miss in earnings, the management’s confidence in improving disability results and reaffirming an EPS growth target of 6-10% for 2025 supports a positive outlook. The potential for an increase in the buyback guide following the closure of the LTC deal and the possibility of additional LTC deals are also seen as beneficial to the stock price.
Furthermore, although EPS estimates have been adjusted slightly lower due to higher expenses and lower buyback accretion, the price target has been raised based on higher market multiples. The reaffirmation of the EPS growth guidance, driven by improving group disability results, alternative income expectations, and organic growth, adds to the positive sentiment. Additionally, Unum’s active management in capital allocation and share repurchase plans further solidifies the Buy rating.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $89.00 price target.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UNM in relation to earlier this year.