UBS Lowers Unum Group (UNM) Forecast While Maintaining Neutral Rating

Unum Group (NYSE:UNM) is included among the 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds.

On February 20, UBS lowered its terms proposal connected Unum Group (NYSE:UNM) to $81 from $85. The steadfast reiterated a Neutral standing connected the shares. The accommodation reflected a much cautious outlook pursuing caller show and updated expectations.

Earlier, connected February 6, Evercore ISI besides reduced its terms extremity connected Unum, lowering it to $103 from $105. The steadfast kept an Outperform rating. The expert described the caller play arsenic a “rough disablement quarter” and said that, connected an “apples to apples” basis, the company’s 2026 guidance came successful astir 1% to 2% little than expected.

During the company’s Q4 2025 net call, CEO Richard McKenney said Unum delivered disciplined execution crossed its halfway businesses. He besides highlighted continued concern successful integer capabilities, which helium said helps acceptable the institution isolated successful the market. McKenney noted advancement successful the Closed Block segment, saying these improvements strengthened the company’s wide hazard profile.

For the afloat year, adjusted EPS came successful astatine $8.13. This effect declined from the anterior twelvemonth and fell abbreviated of expectations. McKenney said higher-than-expected payment costs were the main crushed for the shortfall. Even so, premium maturation successful halfway operations remained steady. Total premium maturation reached astir 4.5%. Colonial Life posted 3.1% growth, portion planetary operations delivered stronger maturation of 10%.

Looking ahead, McKenney said helium remains assured successful Unum’s position. He pointed to the company’s fiscal spot and $2.3 cardinal successful currency astatine the holding institution level. He besides noted that Unum returned important superior to shareholders, including a 10% summation successful its dividend and $1 cardinal successful stock repurchases.

Unum Group (NYSE:UNM) operates arsenic an planetary supplier of workplace benefits and services. Through its Unum and Colonial Life brands, the institution offers disability, life, accident, captious illness, dental, and imaginativeness insurance. It besides provides permission absorption and behavioral wellness services.

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