UPDATE: Bank of America Downgrades Protective Life to Neutral
Bank of America lowers its price target on Protective Life (NYSE: PL) to Neutral from Buy based solely on valuation.
Bank of America says, "We are reducing our rating from Buy to Neutral on PL based solely on valuation. Protective Life has rebounded more substantially than the group since the early October lows (up 87% or more than double the 40% gain for the S&P Life Insurance Index). Although it trades at a discount P/BV multiple versus the group (69% vs. 79%), PL is trading in line with peers on a P/E basis (8x). While 8x earnings is not a big multiple, it is a relatively full valuation considering that we believe Protective's long-term growth rate is below peer companies."
PL closed at $26.82 a share on Tuesday.
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