On Monday, Primerica shares (NYSE:PRI) were downgraded by Raymond James from a Strong Buy to a Market Perform rating. The financial services firm's stock has approached the analyst's previous target price of $244, prompting the adjustment in rating. Primerica's fourth quarter earnings per share (EPS) are expected to remain steady at $4.23, aligning with the firm's forecast but slightly below the consensus estimate of $4.27.
The downgrade comes as Primerica's stock value has neared the target set by Raymond James, indicating a shift in the stock's perceived potential. Despite the change in rating, the financial analyst reiterates the EPS estimate for the last quarter of 2023, suggesting stability in the company's financial performance.
Primerica's Senior Health segment is anticipated to report a minor loss of $1 million for the fourth quarter of 2023. This contrasts with the consensus estimate, which predicts a modest income of $0.3 million, as sourced from Visible Alpha.
The firm's performance in the Senior Health sector appears to be slightly underwhelming compared to market expectations. This specific segment's anticipated loss, albeit small, may have contributed to the decision to downgrade the stock.
The update on Primerica's rating reflects a measured perspective on the company's current valuation and near-term prospects. Raymond James has adjusted its stance based on the stock's recent movements and the company's expected financial results.
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