UPDATE: Deutsche Bank Initiates Lincoln National Corporation at Hold on Interest Sensitivity

Deutsche Bank initiated coverage on Lincoln National Corporation

with a Hold rating and a $31.00 price target. Deutsche Bank noted, "The company's large UL portfolio – particularly its SGUL portfolio, along with its retirement business are experiencing significant interest rate-related pressures, as investment yields continue to decline while yet over 95% of accounts with crediting rates are already at their crediting floors. The company took a $750 million impairment charge on its goodwill in 4Q11, and it appears that the market is pricing additional impairments to the balance sheet, which we estimate at $2.7 billion. While we view this as high, we do not see enough risk-adjusted upside at current valuation." Lincoln National Corporation closed at $27.80 on Tuesday.