HCG target for CI Financial?From today's FP Trading Desk -- note the possible target price!
FP Trading Desk
Analysts and traders look for targets after CI Financial boss says he wants to boost financial service offerings
Word that Bill Holland, CI Financial Income Fund's top boss, wants to play in the banks’ sandbox by offering credit cards, loans and mortgages already has analysts and traders sifting through potential acquisition targets. Home Capital Group Inc., which is already licensed to offer mortgages, retail credit, credit card services, and deposits, could be just what Mr. Holland is looking for.
A note off Cormark Sercurities Inc.’s institutional equity sales desk says one of its analysts, Jason Donville, is already quietly kicking around a new price target.
“Donville believes that CI could pay $55-$60 per HCG share and still make the deal accretive,” the note said.
Details about CI’s ambitions came about Thursday, at the mutual fund company’s annual meeting. The Cormark note contained this story from Friday’s Financial Post.
Mr. Donville currently calls Home Capital a “top pick” and has a $48 price target on the stock.
Home Capital’s stock isn’t moving on Mr. Holland’s rumblings. The company shed 8¢ to $38.77 in mid-afternoon trading.
Carrie Tait
ctait@nationalpost.com