BofA analyst Joshua Shanker raised the firm’s price target on Aflac to $115 from $108 and keeps a Buy rating on the shares following Japan’s currency having quickly appreciated by about 10% off the trough 37-year low valuation of nearly 162 Yen to the U.S. Dollar that was seen during the first two weeks of July. This sudden Yen recovery causes a material revenue boost for the firm’s Aflac forecast with a majority of its revenue sourced in Japan, the analyst tells investors. The earnings impact, however, is more muted due to Aflac’s significant hedging strategy around its Yen exposure, the analyst noted.
