Credit Suisse Reiterates Neutral Rating for Protective Life Corp. (PL)
Protective Life Corp. (NYSE:PL)‘s stock had its “neutral” rating reiterated by equities research analysts at Credit Suisse in a research note issued to investors on Wednesday. They currently have a $70.00 price target on the stock, up from their previous price target of $53.00. Credit Suisse’s target price would suggest a potential upside of 19.21% from the stock’s previous close.
The analysts wrote, “We view the announced deal as a positive for the rest of the sector as a company with relatively high asset leverage and a decent sized VA block is being acquired at 1.67x bv and 13x 2015 P/E, both premiums to the sector (of 1.1x and 9.5x). The negative angle we thought on the Nikkei report earlier this week was that PL has historically been a savvy buyer of insurance businesses and was selling at just a modest 15-20% premium. “Now with the $700mm to $800mm of additional proceeds, we see the ~30% premium as more reasonable. We note that this deal compares favorably to Tokio Marine’s purchase of DFG in 2011, which was done at ~11x year ahead EPS estimates and 1.5x P/BV multiple with a more desirable business mix in our opinion.”
Several other analysts have also recently commented on the stock. Analysts at Barclays raised their price target on shares of Protective Life Corp. from $58.00 to $70.00 in a research note on Wednesday. They now have an “overweight” rating on the stock. Separately, analysts at Bank of America upgraded shares of Protective Life Corp. from an “underperform” rating to a “buy” rating in a research note on Friday, May 16th. They now have a $62.00 price target on the stock, up previously from $53.00. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Protective Life Corp. in a research note on Wednesday, May 14th. They now have a $56.00 price target on the stock. Four investment analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Protective Life Corp. currently has an average rating of “Hold” and an average price target of $60.83.
Protective Life Corp. (NYSE:PL) traded up 18.07% during mid-day trading on Wednesday, hitting $69.33. 23,475,224 shares of the company’s stock traded hands. Protective Life Corp. has a 52 week low of $36.36 and a 52 week high of $60.38. The stock’s 50-day moving average is $51.58 and its 200-day moving average is $50.85. The company has a market cap of $5.466 billion and a P/E ratio of 11.94.
Protective Life Corp. (NYSE:PL) last posted its quarterly earnings results on Wednesday, May 7th. The company reported $1.19 earnings per share for the quarter, beating the analysts’ consensus estimate of $1.15 by $0.04. During the same quarter last year, the company posted $0.89 earnings per share. Analysts expect that Protective Life Corp. will post $4.83 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Monday, June 9th. Investors of record on Friday, May 23rd will be given a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a yield of 1.63%. The ex-dividend date of this dividend is Wednesday, May 21st. This is an increase from Protective Life Corp.’s previous quarterly dividend of $0.20.
Protective Life Corporation is a holding company. The Company, along with its subsidiaries, provides financial services through the production, distribution, and administration of insurance and investment products.
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