15:26:55 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



CI Financial Corp
Symbol CIX
Shares Issued 257,761,847
Close 2017-10-03 C$ 27.75
Market Cap C$ 7,152,891,254
Recent Sedar Documents

Globe says CIBC resumes coverage on CI Financial

2017-10-04 09:34 ET - In the News

The Globe and Mail reports in its Wednesday edition that CIBC analyst Paul Holden resumed coverage of CI Financial ($27.75) with an "outperformer" rating following the close of its acquisition of Sentry. The Globe's Gillian Livingston writes in the Eye On Equities column that Mr. Holden boosted his share target to $34 from $32. Analysts on average target the shares at $26.69. Mr. Holden says in a note: "The financial implications of the transaction are compelling as we estimate operating EPS accretion of 6 per cent in 2019. The strategic implications are less obvious, but at the end of the day we think increased scale can be used to drive competitive advantages. Sentry has been posting material net redemptions and that might be the biggest risk to the transaction. We have increased our price target ... to capture estimated EPS accretion, partly offset by a lower valuation multiple to capture net redemption risk. We don't think the market is rewarding CI for transaction accretion. Earnings accretion will hinge on CI's ability to increase profit margins at Sentry. The target is to bring Sentry's margins in line with CI by the end of 2019, which is expected to result in mid- to high single digit EPS accretion."

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