Wolfe Research initiated coverage of Aflac Inc. with an underperform rating.

The firm set a price target of $103.00 for the stock.

This target suggests a potential 15% decline from current price levels.

Analyst Tracy Benguigui warned that Japan sales growth cannot offset a shrinking in-force base.

Benguigui noted that Aflac relies on share buybacks to drive earnings per share growth.

The firm expressed concern that this strategy may not be sustainable.

Aflac reported second-quarter adjusted earnings of $1.75 per share.

This result missed the analyst forecast of $1.78 per share.

Quarterly revenue reached $4.12 billion, slightly exceeding expectations.