Citigroup Reiterates Hold Rating, $45 PT On SFG

Citigroup is reiterating its 2M (Hold, Medium Risk) rating on StanCorp Financial Group, Inc. SFG, as well as its $45 PT. “There is no change to our $45 target and 2010-2013E,” Citigroup writes. “We consider SFG's shares fully valued at 1.14x 2011 BV of $41.63 and 9.1x our 2011E of $5.20; levels in-line with the peer group average. “For 2011, top-line revenue growth as well as bottom-line earning's margins for all group insurers will remain quite challenged. They continue to face very competitive pricing along with a difficult macro-economic environment in the guise of high unemployment and low wage rate growth as fewer jobs means fewer premiums.” StanCorp Financial Group closed Tuesday at $47.52.