Canaccord Upgrade In a research note previewing fourth-quarter earnings season, Canaccord Genuity analyst Scott Chan thinks investor sentiment toward Canadian life insurance companies is “improving,” prompting him to raise his target prices.
His changes are:
- Sun Life Financial Inc. ( “buy”) to $68.50 from $66. Average: $67.13.
“We suggest that investor sentiment continues to improve (e.g. roll out of vaccines, yield curve steepening, strong earnings resiliency), while valuations remain attractive. Currently, the Group trades at P/E (fwd.) of 8.6 times which represents a 15-per-cent discount to its historical average (MFC at negative 23 per cent),” said Mr. Chan.