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On Wednesday, Truist Securities updated its outlook on Unum Group (NYSE: NYSE:UNM), raising the price target to $90 from the previous $75 while reiterating a Buy rating on the stock. This upgrade aligns with broader market sentiment, as InvestingPro data shows three analysts have recently revised their earnings upward. The adjustment follows a revision of the firm’s earnings per share (EPS) projections for the insurer, with an increase for the year 2025 to $9.20, up from $9.15, and an initial forecast for 2026 set at $10.00.
The revised price target is grounded in expectations of Unum Group’s continued revenue growth and profitability, alongside its ability to generate excess capital. Currently trading at an attractive P/E ratio of 8.45x and maintaining a GREAT financial health score according to InvestingPro, the company appears well-positioned. Truist Securities has based the new price target on the premise that Unum Group’s shares will trade at 9.0 times the projected earnings for the next year, aligning with the current year’s average for the Life insurance group.
The firm’s analysts believe that this valuation is justified, translating into a price-to-book ratio of 1.1 times their year-end 2025 forecast. The positive outlook reflects confidence in Unum Group’s financial performance and market position within the insurance sector.
Unum Group’s stock performance will be closely watched by investors as the company aims to meet these financial targets and justify the confidence reflected in Truist Securities’ updated assessment. The new price target of $90 represents a significant potential upside from the previous target, indicating a robust outlook for the insurer’s future.
In other recent news, Unum Group reported fourth-quarter earnings and revenue that did not meet analyst expectations. The insurance company disclosed adjusted earnings per share of $2.03, falling short of the consensus estimate of $2.14, and revenue of $3.24 billion, which was below the anticipated $3.29 billion. Despite this, Unum’s premium income saw a 3.1% increase year-over-year, reaching $2.63 billion, and net investment income rose by 2.4% to $543.6 million.
Unum’s largest business unit, Unum US, experienced a 2.6% decline in adjusted operating income, settling at $333.2 million. In contrast, the Colonial Life segment reported a significant 39.7% increase in adjusted operating income, amounting to $122.7 million. The recent developments also include Unum’s full-year 2025 outlook, which projects an 8-12% growth in after-tax adjusted operating income per share, compared to 2024’s result of $8.44 per share.
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