Wells Fargo Raises CNO Valuation Range From $6-8 To $7-9

Wells Fargo is raising its valuation range for CNO Financial Group, Inc. CNO to $7-9 from a prior range of $6-8. “The midpoint of our new valuation range is based on a 0.65x multiple against our conservative estimate of adjusted 2011 book value of $11.85, which backs out the NOL and 35% of DAC balance (versus 0.5x 2011E book value ex AOCI of $16.60),” Wells Fargo writes. “Our new target represents a 7.7x P/E multiple extended against pre-tax 2011 earnings. We reiterate our Outperform rating.” CNO Financial currently trades at $6.98.