BMO Capital Cuts Sun Life Financial's Price Target By 4%

BMO Capital analyst Tom MacKinnon lowered the price target for Sun Life Financial Inc SLF SLF to C$72 from C$75, with an Outperform rating on the shares.

While IFRS17 impact to underlying EPS, at 5%, was perhaps larger than expected, with 2023E underlying EPS estimates/TP declining accordingly, a positive outlook for future growth on a larger contractual service margin (CSM) provides good visibility into future underlying EPS growth.

MacKinnon mentions that SLF maintains an 8%-10% medium-term underlying EPS growth outlook and sees modest positive to already strong LICAT.

With underlying EPS being primary valuation metric, the analyst sees little impact from outsized BVPS impact (15%-20%) and is largely offset by the underlying ROE target upped to 18%+.

Price Action: SLF shares are trading higher by 0.99% at C$62.39 on TSX and higher by 1.39% at $49.49 on NYSE on the last check Wednesday.

Photo Via Company

Posted In: CanadaAnalyst ColorNewsPrice TargetAnalyst Ratings

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.