Piper Jaffray Remains Sidelined on Torchmark Corp. (TMK) After Management Provides Additional 2016 Guide Details

Piper Jaffray maintained a Neutral rating on Torchmark (NYSE: TMK), and cut the price target to $56.00 (from $57.00), after management provides details regarding 2016 guidance. Management indicated free cash flow for 2016 and 2017 is expected to range $320-330M, lower than in recent years due to lower distributable statutory earnings from subsidiaries in 2015. Management also indicated expectations for a quarterly level of buybacks around $80M.

Analyst John Nadel commented, "Management provided additional details regarding its updated 2016 guidance on the 4Q15 conference call. Lower than previously expected sales growth, reduced margin expectations at Direct Response, and a reduction to the previous expectation for free cash flow for buybacks leave us struggling to arrive at the midpoint of EPS guidance of $4.38. Revisions to our estimates reflecting updated guidance and other minor adjustments bring our 2016/17E EPS down by 1% each to new $4.35/$4.70. Our price target drops a dollar to $56."

For an analyst ratings summary and ratings history on Torchmark click here. For more ratings news on Torchmark click here.

Shares of Torchmark closed at $52.82 yesterday.

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