Scotiabank Raises Target Scotia’s Phil Hardie raised his Trisura Group Ltd. target to $56 from $54, above the $52 average, with an “outperform” rating.
“There was likely some investor trepidation heading into the release of Trisura’s year-end results, however, the quarter played out largely in line with our expectations with no new surprises or significant unexpected charges,” said Mr. Hardie. “The quarter saw some final clean-up related to run-off programs and a bit slower-than-expected top-line growth across the U.S. platform as management likely repositions its book to set up for a clean 2024 with improved profitability expected to be a key growth lever. With no new developments or charges related to Vesttoo, we believe risks that have caused an overhang on the stock are receding which bodes well for multiple expansion over the coming months.
“Operating results were in line with expectations with higher-than-expected investment income offsetting weaker-than-forecast U.S. profitability. That said, we believe there is limited read-through from the U.S. result, but expect the step-up in interest & dividend income to be sustainable and have raised our estimates and target price.”