UPDATE: Citigroup Initiates Lincoln National Corporation at Neutral on Valuation

Citigroup initiated coverage on Lincoln National Corporation

with a Neutral rating and a $29.00 price target. Citigroup noted, "LNC has delivered solid operating results over the past two years and is generating a 10%-11% ROE, roughly in-line with the group average. While the stock appears cheap, we believe the current discount to book value is warranted based on the company's negative “excess” returns. We are also wary of LNC's above-average exposure to products with equity market and interest-rate risk (notably variable annuities and universal life) and believe other life names offer more attractive risk-reward. Lincoln National Corporation closed at $27.37 on Wednesday.