In a report released today, Jimmy Bhullar from J.P. Morgan maintained a Hold rating on AFLAC (AFL – Research Report), with a price target of $96.00.
Jimmy Bhullar’s rating is based on a combination of factors including AFLAC’s stable financial position and capital flexibility, which are positive aspects of the company. However, the modest return on equity and exposure to high tail risks present challenges that temper enthusiasm for a more favorable rating. Additionally, the broader life insurance sector is facing a less compelling risk-reward scenario due to negative macroeconomic conditions and a recovery in valuation multiples. Bhullar anticipates weak earnings and mixed business trends in the near term, which further supports a cautious stance. While AFLAC’s earnings projections are above consensus for the upcoming quarter, the overall outlook for the sector remains neutral, leading to a Hold rating.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AFL in relation to earlier this year.