Wunderlich Has Buy On StanCorp Financial Group (SFG)

Wunderlich Securities has a Buy rating and a $50 price target on shares of StanCorp Financial Group, Inc. SFG. In a note to clients, Wunderlich writes, "We reiterate our Buy rating and price target of $50, or 1.1x 2011E book value of $44.45, on shares of StanCorp Financial Group (SFG). However, we are lowering our 1Q11 EPS estimate to $0.75 from $1.22, our 2011 EPS estimate to $4.00 from $4.85, and our 2012 EPS estimate to $5.00 from $5.36. On April 14, SFG preannounced 1Q11 results. SFG incurred significantly higher frequency in long-term disability (LTD) claims resulting in a 1Q11 benefit ratio of 84.2% compared to our estimate of 76.9%. SFG provided guidance for 1Q11 operating EPS of $0.75-$0.77. We believe weak economic conditions resulted in a spike in claims, and we anticipate the elevated benefit ratio will continue throughout 2011." Shares of SFG lost $2.83 on Friday to close at $42.54, a loss of over 6%.