CNO Financial downgraded to Underperform from In Line at Evercore ISI

Evercore ISI downgraded CNO Financial to Underperform from In Line with a price target of $26, up from $24. The stock was a beneficiary on higher operating earnings on the new GAAP LDTI accounting, but now looks expensive on free cash flow, especially given some mixed growth trends, the analyst tells investors. While LTDI accounting changes and enhanced disclosures ended up having a more pronounced impact in 2023, the firm thinks the “bright new shiny object” effect received more attention in 2023 and suspects this will wane in 2024 with an increased focus on free cash flow again.