Aflac Upgraded to “Outperform” at FBR Capital; EU Not a Concern (AFL)

Share |

Supplemental insurer Aflac Incorporated ( AFL ) 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 of $57.15.

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 Thursday.

The Bottom Line
Shares of Aflac ( AFL ) 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 ( AFL ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by

This article appears in: Investing , Stocks

Referenced Stocks: AFL

More from

Related Videos




Most Active by Volume

  • $56.25 ▼ 1.58%
  • $16.67 ▼ 0.42%
  • $24.66 ▼ 0.64%
  • $3.80 ▼ 2.56%
  • $8 ▲ 0.25%
  • $131.78 ▼ 0.20%
  • $18.27 ▲ 1.56%
  • $34.01 ▲ 0.89%
As of 5/28/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by