Market Overview

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

Share:
Related CNO
Earnings Scheduled For August 1, 2018
Analyst: CNO Financial Is Stuck Dealing With A 'Problematic Product Class'

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

DateFirmActionFromTo
Jun 2018B. Riley FBRMaintainsBuyBuy
May 2018Morgan StanleyUpgradesUnderweightEqual-Weight
Mar 2018William BlairInitiates Coverage OnOutperform

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

StockFirmActionPT
TEAMKeyBancUpgrades89.0
VIABImperial CapitalUpgrades29.0
AMDBarclaysUpgrades25.0
CDNSJP MorganUpgrades51.0
EBAYRBC CapitalDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Susquehanna Sticks Up For National Beverage After Pullback

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