UPDATE: Citi Lowering Price Target on StanCorp Financial

Citi Investment Research is out with a research report on StanCorp Financial (NYSE: SFG) and it is lowering its price target to $30 from $32, but is keeping its Hold rating on shares.

In a note to clients, Citi Investment Research writes, "There is no change to our Hold rating, but we have reduced our target to $30 and revised our 2012E-13E EPS to $3.40 and $4.65. There is no change to our 2011E EPS of $2.70. Our changes reflect the drop in equity market valuations for the peer group, coupled with the risk of continued high claims incidence at SFG's core group LTD business through YE12. Our forecasts include modest negative impact to book value and earnings from the pending GAAP ASU 2010-26 change for deferred acquisition costs (DAC)."

Shares of SFG closed at $27.52 yesterday.