Citi Reiterates Hold on AFLAC, Reduces PT to $55

Citi reiterated its Hold rating on AFLAC (NYSE: AFL). At the same time, Citi lowered its price target on AFLAC from $57 to $55 after the company presented bleak earnings picture at last week's meeting.

In a research report published today, Citi states, "There is no change to our 2H (Hold, High Risk) rating but we have lowered our target to $55 and cut our 2011-13E to $6.25, $6.50 and $7.00. These changes were triggered by the surprisingly difficult earnings and capital picture management presented at last week's meeting that precipitated a roughly 10% decline in AFL's share price. Positively, the company's sales outlook is actually getting better but it is clear the financial outlook is far less certain."

On Tuesday, AFLAC closed at $49.23.