UPDATE: KBW Upgrades Primerica
In a note dated February 10, 2014, KBW upgraded Primerica (NYSE: PRI) from Market Perform to Outperform and raised the price target from $47 to $51.
KBW's Jeffery Schuman noted three primary reasons behind the upgrade:
- Litigation/arbitration agreement - On January 17, Primerica announced that it had entered into a memorandum of understanding to potentially resolve pending arbitration and litigation related to certain participants in the Florida Retirement System.
- Sales force Momentum - After a period of contraction, the licensed sales force grew 1% in 2012, accelerating to 4% in 2013.
- Valuation Upside -With the improved legal outlook and more confidence about sales force growth, we're now discounting a 9% cost of equity more consistent with Primerica's low risk/high return profile.
At last check, Primerica is trading at $43.98 up almost 7 percent for Tuesday.
Latest Ratings for PRI
|Sep 2016||Wells Fargo||Initiates Coverage on||Market Perform|
|Jul 2016||Keefe Bruyette & Woods||Downgrades||Outperform||Market Perform|
|Jan 2016||William Blair||Initiates Coverage on||Outperform|
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