Globe & Mail A group of equity analysts on the Street raised their targets for shares of IA Financial following Wednesday’s release of stronger-than-expected third-quarter results.
Shares of the Toronto-based firm rose almost 3 per cent after it reported core earnings per share of $2.23, exceeding management’s guidance ($2.00–2.15) and above the consensus projection on the Street of $2.12.
“We believe IAG will likely hit the high end of its 2021 core EPS guidance, has reserve buffers in case things get bumpy and the valuation is compelling,” said Desjardins Securities’ Doug Young.
He raised his target to $85 from $80, keeping a “buy” recommendation. The average target is $86.61.
Others making adjustments include:
* CIBC World Markets’ Paul Holden to $84 from $82 with an “outperformer” rating.
“Management stated that it intends to take its dividend payout ratio back to the middle of its 25-35-per-cent range as soon as possible. We expect that will happen before the release of Q4 results in February and our 2022 estimated EPS suggest a dividend increase of 30 per cent is possible,” said Mr. Holden.
* RBC’s Darko Mihelic to $83 from $81 with an “outperform” rating.
* Canaccord Genuity’s Scott Chan to $89.50 from $85.50 with a “buy” rating.
* Scotia Capital’s Meny Grauman to $91 from $90 with a “sector outperform” rating.
* National Bank Financial’s Gabriel Dechaine to $87 from $86 with an “outperform” rating.