Shares of Aflac dipped 0.3 percent Monday after analysts at KBW questioned whether the stock can keep trucking higher.
"We believe a premium multiple is warranted for AFL's lower risk liabilities, high margins, and improved capital deployment. However, at 10.2x next-12-month operating [earnings per share], we think valuation fairly balances these positive attributes against a challenging growth outlook, peak margins and increasing economic hedging costs," KBW said in a Friday note to clients.
"AFL has enjoyed a string of favorable claims experience, and a key question is whether this can persist."
KBW downgraded the stock to "market perform" from "outperform," but kept its price target unchanged.
Still, Aflac shares have been on a roll this year, rising more than 14 percent.
AFL in 2016
Disclosure: KBW makes a market in Aflac shares.