J.P. Morgan Less Upbeat On Unum Group

In a report released this morning, J.P. Morgan said that it is incrementally less upbeat on Unum Group UNM following 3Q10 results. “In our view, UNM is defensively positioned given its strong capital position and below-average portfolio risk, but we are maintaining our Neutral rating due to a cautious outlook for top-line growth,” J.P. Morgan writes. “UNM reported 3Q10 operating EPS of $0.68, in-line with our estimate and consensus. Management did not outline any unusual items, but the tax rate was unusually low, and we expect it to increase in the fourth quarter.” Adjusting for this, J.P. Morgan estimates that UNM would have earned $0.67. Unum Group currently trades at $22.82.