Horace Mann Educators (HMN) has received a new Buy rating, initiated by BMO Capital analyst, Michael Zaremski.
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Michael Zaremski’s rating is based on several compelling factors that suggest a positive outlook for Horace Mann Educators. The company’s unique strategy of utilizing a captive salesforce to target schoolteachers sets it apart from peers who depend on third-party agents. This approach is expected to yield significant benefits, provided the company executes its current strategy effectively. Zaremski anticipates that Horace Mann’s sales key performance indicators will turn positive in the coming years, bolstered by improvements in property and casualty margins and a favorable capital management outlook.
Moreover, the analyst highlights several attractive aspects for investors, including a reduced volatility profile for return on equity, a strong and sustainable home insurance profit margin, and a larger excess capital position compared to peers. Additionally, Horace Mann’s valuation remains more than 10% less expensive than its competitors, and there is a healthy alignment with shareholder interests. Despite some mixed views on the company’s growth algorithm and management’s guidance track record, the overall prospects for Horace Mann appear promising, justifying the Buy rating.
Zaremski covers the Financial sector, focusing on stocks such as Brown & Brown, Progressive, and Travelers Companies. According to TipRanks, Zaremski has an average return of 9.8% and a 64.37% success rate on recommended stocks.
In another report released on July 26, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $45.00 price target.