The Financial Post reports in its Friday edition that Industrial Alliance Insurance and Financial Services ($49) was upgraded by TD Securities analyst Mario Mendonca to "action list buy." The Post's Jonathan Ratner writes in the Trading Desk column that Mr. Mendonca issued the upgrade after the company revealed plans at its June 10 investor day to strengthen its reserves. Mr. Mendonca says this will result in less tail risk and earnings volatility associated with changes in interest rates and equity markets. Mr. Mendonca continues to target the shares at $54. The analyst also expects the company's plan will add 20 cents to 25 cents in 2015 earnings per share. Mr. Mendonca says, "The upgrade reflects IAG's below-average performance year to date, which we believe was driven by the Q1 2014 earnings miss and the decline in the Quebec bond yield." The stock has risen 10 per cent since the company's investor day, but Industrial Alliance is still underperforming Manulife Financial and Sun Life Financial by more than 4 per cent this year. The Post reported on Oct. 17, 2013, that Desjardins Securities analyst Michael Goldberg figured Industrial Alliance had limited upside. It could then be had for $44.98.