Why Is Barclays Downgrading Torchmark Corp?

In a report published Tuesday, Barclays analysts downgraded the rating on

from Overweight to Underweight, while reducing the price target from $60 to $53. The downgrade reflects low upside to the company's EPS expectations. Torchmark stocks are currently overvalued and amongst the highest in the life insurance industry. There is little scope of appreciation in the near future. "Torchmark has a strong franchise in middle-market life and supplemental health insurance in the U.S. However, we don't see much upside to EPS expectations over the next few years as a result of slowing premium growth and stable margins, and we view TMK as overvalued," the analysts stated. The EPS estimate for FY2 has been reduced from $4.80 to $4.70.