UnumProvident "underperform," target price raised

01/30/07 - Credit Suisse

NEW YORK, January 30 (newratings.com) - Analyst T Gallagher of Credit Suisse maintains his "underperform" rating on UnumProvident Corporation (UNM), while raising his estimates for the company. The target price has been raised from $16.00 to $17.50.

In a research note published this morning, the analyst mentions that the company has reported its 4Q06 operating EPS ahead of the estimates and the consensus. The upside was driven by higher-than-anticipated UK earnings and net investment income in GIP (group income protection) as well as a lower-than-expected tax rate, the analyst says. The EPS estimate for 2007 has been raised from $1.65 to $1.75.