UPDATE: Bank of America Lowering Price Target On StanCorp Financial Group

Bank of America Merrill Lynch is out with a research report on StanCorp Financial Group SFG and is lowering its price target to $42 from $51 following earnings. It has a Neutral rating on shares. In a note to clients, Bank of America Merrill Lynch writes, "Group insurance contracts allow for repricing of the in-force book, so the path toward ROE recovery is quicker than with individual life/annuity products. With corrective pricing actions, we see the return to a double digit ROE by 2013. Our PO suggests 20% upside potential, but with upside of 35% for the median name under coverage, valuation is not enough to warrant a Buy, especially with business model uncertainty." Shares of SFG lost 36 cents yesterday to close at $35.14