UPDATE: Morgan Stanley Reiterates On Aflac Following Disappointing 2Q Results

In a report published Wednesday, Morgan Stanley analyst Nigel Dally reiterated an Equal-Weight rating on

, but lowered the price target from $72.00 to $70.00. In the report, Morgan Stanley noted, “For several years, investors have been looking for an acceleration in the EPS growth driven by stronger sales, margin expansion, and accelerating capital management. However, the company appears to be continuing to struggle to regain lost momentum, with Japan sales now expected to be at the low end of their prior guidance, US sales expectations significantly cut, and with the EPS guidance range narrowed to a level below what we were previously expecting. "Further, in 2015, it also appears the company will be incurring new costs related to sales initiatives that will further weigh on results. Against this, we find ourselves lowering again our expectations, and despite underperformance of the stock, we recommend investors to stay on the sidelines.” Aflac closed on Tuesday at $63.14.