Post by
Schussing56 on Feb 16, 2023 7:54am
TD Securites - Pow Guidance Updates
TD Securities: Feb. 15, 2023 - In line with a higher 2023 EPS forecast, and incorporating recent increases to our Great-West and IGM target prices, our target price for Power Corp. increases to $38.00. Our Q4/22 EPS estimate has increased to $1.04 (from $0.91 previously) reflecting better-than-expected Q4/22 results recently from both Great-West and IGM. Our 2023 EPS estimate has also moved higher by 4%. We are expecting Power Corp. to announce a dividend increase with its Q4/22 results; Power Corp. will report results on March 16, 2023. We are forecasting a 5% increase (declared in Q1/23, payable in Q2/23). This reflects a quarterly dividend of $0.52/share, up from the current $0.495/share.
TD Investment Conclusion: Management has executed well on simplifying the business, improving disclosure and investor outreach, lowering operating expenses, and surfacing value from standalone investments. We believe Power Corp. has defensive qualities that should support valuation in volatile market conditions.