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We are downgrading StanCorp Financial Group (SFG) to Underperform from Neutral, following the company's announcement to post lower earnings in the second quarter. The company expects earnings to be $0.51 per share, hurt by lower favorable claims experience in the group long-term disability insurance business.
The Zacks Consensus Estimate is currently pegged at $0.85. The company is scheduled to release its second quarter results on July 23 after the bell. The company also expects to fall short of its full-year guidance, given its soft performance in the first half of the year.
Our six-month target price of $34.00 equates to 9.5x our earnings estimate for 2012. Combined with the annual dividend of $0.89 per share, this target price implies a negative return of about 7.1% over that period. This is consistent with our Underperform recommendation on the shares.
STANCORP FNL CP (SFG): Free Stock Analysis Report
STANCORP FNL CP (SFG): Free Stock Analysis Report
STANCORP FNL CP (SFG): Free Stock Analysis Report
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