Supplemental insurer Aflac Incorporated (
) on Thursday saw its rating and price target boosted by analysts
at FBR Capital Markets.
The firm said its upgraded AFL from "Market Perform" to
"Outperform" while boosting its price target $59 to $69. That new
target implies a 21% upside to the stock's Wednesday closing price
An FBR analyst commented, "Aflac shares have lagged the group by
14% in the last three months, likely on increased European
sovereign and financial credit concerns. In both our base case and
stress case credit loss scenarios, we believe Aflac is adequately
capitalized to earn its way through potential impairments related
to Portugal, Ireland, Italy, Greece, and Spain exposure. If credit
losses materialize as we forecast in our base case, the company
should be well positioned to deliver on the high end of buyback
guidance, with the potential to upsize the buyback program."
Aflac shares rose 53 cents, or +0.9%, in premarket trading
The Bottom Line
Shares of Aflac (
) have a 2.10% dividend yield, based on last night's closing stock
price of $57.15. The stock has technical support in the $52 price
area. If the shares can firm up, we see overhead resistance around
the $58-$62 price levels.
Aflac Incorporated (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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