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On Thursday, Raymond (NSE:RYMD) James increased its price target for Horace Mann Educators (NYSE:HMN) shares from $46.00 to $49.00, while maintaining a Strong Buy rating on the stock. The firm’s analyst cited the insurance provider’s solid distribution network and durable customer relationships as key factors in the decision. According to InvestingPro data, the company’s stock currently trades at $41.47 with a P/E ratio of 15.11, suggesting potential value for investors. Three analysts have recently revised their earnings estimates upward for the upcoming period.
The new price target suggests approximately a 19% upside potential from the current levels, based on a sum-of-the-parts analysis. This reassessment comes in the wake of Horace Mann’s recent investor day on Friday, May 13, where the company revealed ambitious financial goals. These targets include a high single-digit compound annual growth rate (CAGR) in revenue over the next three years, a free cash flow generation rate exceeding 75% for 2025, and an expected return on equity (ROE) increase to 12-13% within the next three years, up from a previous target of 10%+ for 2025. The company’s financial health score on InvestingPro is rated as GOOD, with particularly strong scores in cash flow and relative value. Notably, Horace Mann has maintained dividend payments for 34 consecutive years and has raised its dividend for 15 straight years, currently offering a 3.38% yield.
In response to the company’s updated outlook and goals, Raymond James has revised its earnings per share (EPS) estimates for Horace Mann for the years 2025, 2026, and 2027. The new EPS forecasts are $4.02, $4.60, and $5.04, respectively. The higher 2025 EPS projection is driven by Horace Mann’s new definition of adjusted core EPS, while the projections for 2026 and 2027 reflect a higher growth outlook.
The analyst’s optimistic view is also supported by Horace Mann’s performance in the first quarter of 2025, which aligns with the guidance provided during the investor day presentation. Horace Mann’s strategic initiatives and financial planning seem to resonate with Raymond James’ positive assessment of the company’s future.
In other recent news, Horace Mann Educators Corporation reported strong financial results for the first quarter of 2025, exceeding analyst expectations. The company posted an earnings per share of $1.07, surpassing the forecasted $1.03, and reported revenue of $416.4 million, significantly above the anticipated $302.65 million. This performance highlights a 73% year-over-year increase in core earnings per share and an 8% growth in revenue, driven by robust sales across various segments. Additionally, Horace Mann announced a strategic partnership with Crayola to enhance creative educational programs, including sponsoring Crayola Creativity Week. The company has also authorized a new share repurchase program of up to $50 million, reflecting its commitment to driving shareholder value. Furthermore, Horace Mann has launched a new customer relationship management system named Catalyst, which is expected to bolster future earnings. Analysts have expressed positive sentiment about the company’s financial health, noting the approval of rate increases in California that are expected to support future profitability.
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