Piper Sandler analysts raised their price target on Unum Group (NYSE:UNM) to $66 from $64 while maintaining an Overweight rating on the stock.
The analysts reaffirmed confidence in Unum’s positioning, particularly noting that the company stands to benefit from favorable industry trends. They highlighted three key factors supporting the investment thesis: Unum is less exposed to potential interest rate cuts compared to other life insurance companies, with less than 20% of revenue tied to net investment income (NII), reflecting its strength as an underwriter.
Additionally, the company has strengthened its long-term care (LTC) block, reducing risk during actuarial review season. Moreover, Unum has experienced positive claims utilization trends across the organization.
The analysts also emphasized improved earnings, capital deployment, and free cash flow (FCF) conversion, supported by a growing premium base, while noting that Unum’s valuation remains attractive compared to peers and historical averages.