J.P. Morgan Reiterates Overweight on Torchmark (TMK)

J.P. Morgan is out with its report today on Torchmark TMK, reiterating Overweight. In a note to clients, J.P. Morgan writes, "We reiterate our Overweight rating and $66 December 2011 price target. In our view, Torchmark has one of the premier franchises in the life insurance sector, and we expect a pick-up in sales and recruiting, improved returns, and ongoing share buybacks to drive further upside in the stock. While TMK is no longer trading at a depressed valuation (1.3x book value ex-AOCI and 9.4x 2011E EPS), we think the premium multiple relative to the group is warranted given the company's superior returns (13-14% ROE vs. our 10-12% projection for the group). Shares of TMK closed Wednesday at $64.55, up 0.09% from Tuesday's close.