Primerica rises after TD Cowen starts coverage with 'buy' rating

Primerica

09/10/2024 17:01

** Shares of insurer Primerica  PRI.N  rise 2.9% to $277.44
    ** TD Cowen initiates coverage of PRI with a "buy" rating
and $314 PT, a 16.4% upside to stock's last close
    ** Brokerage says PRI is much less exposed to earnings
pressure from falling interest rates compared to peers as net
investment income comprises only 5% of its revenue
    ** Insurers' investment portfolios comprise mainly of bonds,
which return better yields in a high interest rate environment
    ** Brokerage says declining inflation should ease pressure
on middle-income clients, potentially reducing policy lapse
activity, which has been modestly elevated of late
    ** Two of eight brokerages rate the stock "buy" and six
"hold"; median PT is $286 - LSEG
    ** As of last close, PRI shares up 31.1% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))