Goldman Sachs Raising Estimates On Torchmark After Earnings (TMK)

Goldman Sachs is raising its estimates on Torchmark Corp. TMK after it reported earnings. It has a Neutral rating and a $62 price target. In a note to clients, Goldman writes, "As we have previously noted, we believe TMK is less exposed to a “lower for longer” rate environment as investment income represents just 20% of revenues (around 35% for peers) and only 15% of bonds mature in the next five years (around 40% for peers). In addition, low rates do not change pricing power as TMK could lower interest rate assumptions by 100bps and only negligibly increase pricing (1%-3%) to maintain margins." Shares of TMK lost 71 cents yesterday to close at $56.57, a loss of 1.25%.