Bank of America Upgrades Protective Life

Bank of America Merrill Lynch published a research report, upgrading Protective LifePL The report noted that investors were focused on the impact of low interest rates. According to Bank of America Merrill Lynch, "Since the end of April (recent peak for life stocks and 10-year Treasury yield at 3.29%), PL is down 18% vs. an 11% decline for the S&P Life Index. Rate concerns are overdone, in our view, for two reasons: (1) the EPS impact from low rates is insignificant unless rates are low for many years (which is not the market expectation, as measured by the forward curve); and (2) the more relevant rate for Protective's business is likely the 30-year Treasury yield (which has not declined as much as the 10-year)." Bank of America Merrill Lynch upgraded Protective Life to BUY with a price target of $30.00. Protective Life closed yesterday at $22.33.