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China Life Insurance Company Achieves Buy Rating from Zacks

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Published on : Jun 18, 2015

Zacks has finally taken its call on upgrading the China Life Insurance Company from a “hold” rating to “buy”. On Tuesday Zacks announced, since China Life Insurance Company has exhibited robust growth in the last couple of years, it has decided to promote the financial institution from “hold” to “buy” rating. The firm at present has a target price of $25.00 on stocks. Price objective by Zack indicates a possible upside of 12.82% from the previous closing figure of the stock. 

A spokesperson on behalf of Zacks reported China Life Insurance Company draws strength from its robust market position. The insurance company in the past couple of years has taken innumerable organic growth initiatives. Increasing sale of life insurance, premium growths, product upgrades, and continuously strong score in credit rating agencies has demonstrated the impressive growth of the China Life Insurance Company. The first quarter earnings reported by the company exhibited a significant year on year increase and high investment premiums and incomes. However, the China Life Insurance Company might face enhanced competition from the unbridled domestic exposure. Additionally, currency risk and interest rate also pose threat to the long term sustainable growth of the China Life Insurance Company. 

Nevertheless, rapidly improving and progressing economic scenario of China and the increasing investment income is expected to give an incredible boost to the operations of the China Life Insurance Company. 

However, analysts at Deutsche Bank seems to have a complete different perspective about the potential progress of the China Life Insurance Company. The institution demoted China Life’s status from a “buy” rating to “hold”, as reported in a research note released on Wednesday. 

China Life Insurance Company on Tuesday opened at 22.16. This registered a one year decrease of $13.02 and one year increase of $26.29.