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

CNO Financial Group Inc 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

Posted In: Adam KlaubeWilliam BlairAnalyst ColorInitiationAnalyst Ratings

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.