UPDATE: Keefe, Bruyette & Woods Assumes Coverage on Torchmark on Fair Value

In a report published Wednesday, Keefe, Bruyette & Woods analyst Ryan Krueger assumed coverage on Torchmark (NYSE: TMK) with a Market Perform rating and $83.00 price target.

In the report, Keefe, Bruyette & Woods noted, “Solid $0.02 beat, although we don't see much to alter forward expectations; 2014 guidance midpoint unchanged at $6.20. Life sales bounced back from a challenging 2013 (+5% vs. +3% est.), and health sales benefited from a large group case. The one soft spot was -8% sales at Family Heritage. Along with earnings we are assuming coverage of TMK at Market Perform with an $83 price target.

"We are fans of the company's low risk, high margin/cash flow business profile, but believe the shares are fairly valued at 12.5x earnings (20-25% premium to life group). Introducing 2014/2015 EPS estimates of $6.20/$6.70.”

Torchmark closed on Tuesday at $78.51.