Market Overview

CNO Financial Has Potential To Be Revalued Upward, Analyst Says In Bullish Initiation


CNO Financial Group Inc (NYSE: CNO)'s return to growth could be gradual but signs of a rebound should positively catalyze the stocks and help narrow the trading gap its shares has with respect to the financial services distributors, an analyst at William Blair said.

The Analyst

William Blair's Adam Klauber initiated coverage of CNO Financial with an Outperform rating.

The Thesis

Having repositioned over the last decade to place it on a firmer financial footing, CNO Financial is primed to enter a growth phase, driven by re-energized distribution strategy and a broader product mix tailored toward baby boomers, Klauber said in a note.

The company is well-positioned to serve the underserved middle-income Americans, who are largely underinsured and/or do not receive financial guidance, and are at or near retirement, the analyst said.

Klauber sees several factors suggesting that the company's growth profile is poised to improve, with the company focusing on the strong secular growth trends in the senior middle-income market. The company is re-energizing its captive agency force by shifting focus toward retention and experience, the analyst said.

"We believe the stock has the potential to be revalued upward similar to other undercovered ϐinancial services distribution plays (e.g., Ameriprise Financial and Primerica)," the note said.

The Price Action

CNO Financial shares are up about 10 percent over the past year.

Related Links:

Qudian And Its 'Potentially Massive' Market Opportunity

Goldman Sachs: Bank of New York Mellon Shares Have Modest Upside Potential North Of $60

Latest Ratings for CNO

Sep 2019MaintainsNeutral
Jun 2018MaintainsBuyBuy
May 2018UpgradesUnderweightEqual-Weight

View More Analyst Ratings for CNO
View the Latest Analyst Ratings

Posted-In: Adam Klaube William BlairAnalyst Color Initiation Analyst Ratings


Related Articles (AMP + CNO)

View Comments and Join the Discussion!

Latest Ratings

WDAYSociete GeneraleUpgrades
BKUDA DavidsonInitiates Coverage On39.0
JDVertical GroupInitiates Coverage On
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Susquehanna Sticks Up For National Beverage After Pullback

A Tariff Winner: Century Aluminum Upgraded By Cowen On 'Positive Outlook'