UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Aflac on Lower EPS Estimates
In a report published Monday, Deutsche Bank reiterated its Hold rating on Aflac (NYSE: AFL), but slightly lowered its price target from $56.00 to $55.00.
Deutsche Bank noted, “The $1 decrease to TP reflects an incremental improvement to the P/B valuation, more than offset by a lower P/E valuation due to lower EPS estimates. A 2.8% dividend yield with regular annual increases is a positive offset. We decreased our FY13E-15E EPS estimates by $0.15, $0.30 and $0.60, to $6.45, $6.95 and $7.65 to reflect the weakening Yen, more modest buybacks and lower margins in Japan, stemming from greater growth of a less profitable WAYS product. This reflects management's decision to offer more attractive terms in order to win business. Hold.”
Aflac closed on Friday at $50.35.
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