Wunderlich Reiterates Buy On StanCorp Financial Group (SFG)

Wunderlich Securities is reiterating its Buy rating and $50 price target on shares of StanCorp Financial Group, Inc. SFG after it reported earnings. In a note to clients, Wunderlich writes, "On January 27, 2011, StanCorp Financial Group Inc. (SFG) reported 4Q10 operating EPS of $1.14 compared to $1.23 a year ago. FY10 operating earnings declined 3% to $4.70 compared to $4.85 in FY09. Our $1.25 4Q10 estimate was in line with consensus. The earnings miss was primarily due to elevated claims. We are lowering our 2011 estimate to $4.85 from $5.30 to reflect higher claims with a 50-basis-point higher benefit ratio estimate of 76%. In addition, our estimate is within the company's guidance of $4.80 to $5.10. Our $50 price target reflects a historically low price to 2011 book value of 1.1 times $45.30 book value and is supported by SFG's estimated 2011 ROE of 13%." Shares of SFG gained 19 cents yesterday to close at $48.64.