2/9/2010- Morgan Stanley analysts see strong run rate of earnings being offset by a more challenging equity market backdrop for Lincoln National Corp. (NYSE:LNC) and are keeping their 2010 EPS estimates unchanged at $3.50.

Analyst Nigel Dally said, "Operating EPS for the quarter was $0.90. Excluding various abnormal items, we put core EPS at $0.91, significantly ahead of both our estimate and the Street's at $0.83. Results benefited from strong returns on alternative investments, although even if we adjust for this, we still arrive at earnings well ahead of our prior expectations. Flows in variable annuities and life insurance sales were also robust, although offset on the margin by weakness in retirement plans. Book value excluding AOCI and all TARP related distortions was $36.31, also modestly ahead of expectations."

The bank maintains an "overweight" rating on the stock with a $33 price target. Morgan Stanley sees fiscal 2010 EPS of $3.50, vs. the consensus estimates of $3.51, and fiscal 2011 EPS of $3.95, vs. the consensus estimates of $4.01.

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