Morgan Stanley Comments on Aflac's Investor Day

Aflac AFL remains one of Morgan Stanley's highest conviction ideas in the life and annuity industry following its Japan investor day presentations. Morgan Stanley feels strong sales growth momentum achieved at the bank channel has substantial room for improvement. Management also downplayed any impact on its relative standings as a result of upcoming changes in solvency ratio calculations due to be implemented in 2012. Based on Morgan Stanley's views that Aflac is well positioned to deliver double digit EPS growth, there continues to be solid multiple expansion opportunities in the stock. Morgan Stanley has an Overweight rating on Aflac and a $68 price target. Aflac closed Friday $50.77