CIBC UpgradeEQUITY RESEARCH
October 4, 2021 Rating Change - Upgrade
SUN LIFE FINANCIAL INC.
Upgrading To Outperformer Following Announced Acquisition
Our Conclusion
We are increasing our price target from $72 to $74 to fully reflect one year of EPS accretion from theDentaQuest transaction. While we continue to value SLF at 11x forward earnings, there are an increasing number of reasons to argue for a higher multiple over time. The DentaQuest acquisition enhances these arguments as it is capital light, high return, has high cash flow conversion and strong growth tailwinds. With this acquisition, and in consideration of a lagging share price over the last six months, we are upgrading SLF from Neutral to Outperformer effective October 4.