The Globe and Mail reports in its Wednesday, July 24, edition that Desjardins Securities analyst Doug Young expects to see "decent" second quarter results from Canadian insurance companies. The Globe's David Leeder writes in the Eye On Equities column that Mr. Young sees investor focusing on core earnings per share, which he expects will grow by 5 per cent on average. Mr. Young says in a note: "2Q19 was a decent quarter for the lifecos, with stocks up 3.1 per cent on average, outperforming the broader Canadian market (rising 1.7 per cent) and the S&P/TSX Financials sub-sector (up 2.4 per cent). The returns have varied however, ranging from down 6.8 per cent for [Great-West Lifeco] to up 8.2 per cent for [iA Financial]. We see a few catalysts that should drive core EPS growth for the group. However, lower interest rates, a flattening Canadian yield curve and global trade uncertainties could remain headwinds, in our view. We expect decent 2Q19 results for the group, with the focus being on management's commentary around the macro environment." Mr. Young continues to rate Manulife Financial "buy." His share target remains unchanged at $29. Analysts on average target the shares at $28.70.
© 2020 Canjex Publishing Ltd. All rights reserved.