Wednesday, December 26, 2012

Zack China Life Insurance stock rating prices target $49.00

Best Insurance Stock - China Life Insurance stock rating prices target $49.00 : Zacks reiterated their neutral rating on shares of China Life Insurance (NYSE: LFC) in a research report sent to investors on Friday morning. The firm currently has a $49.00 price target on the stock.


Zacks’ analyst wrote, “China Life reported a net loss in the third quarter, due to a surge in operating expenses, which offset the operating income increases. However, premiums earned and investment income witnessed a notable improvement. Total assets and shareholders’ equity also improved, while cash fund deteriorated. Meanwhile, the subordinated debt issue has improved solvency ratio. 


Extensive domestic distribution channel, strong investment and stable ratings are other positives. However, the constant decline in operating cash flow is affecting financials. The company also inherently faces substantial interest rate and currency risks, which limit the upside. Despite a strong brand name, significant competition on the domestic front hampers earnings growth. Overall, we expect limited upside in the near term.”

Shares of China Life Insurance traded down 0.43% during mid-day trading on Friday, hitting $46.16. China Life Insurance has a 52 week low of $33.00 and a 52 week high of $47.39. The company has a market cap of $84.896 billion and a P/E ratio of 60.60.

No comments:

Post a Comment