The Globe and Mail reports in its Wednesday, Oct. 16, edition that Desjardins Securities analyst Doug Young expects Canadian life insurance companies to report "decent" core results for the third quarter. The Globe's David Leeder writes in the Eye On Equities column that Mr. Young continues to rate Manulife Financial ($24.17) "buy," with a $29 share target. Analysts on average target the shares at $28.38. Mr. Young says in a note: "In our view, MFC has the potential to outperform coming out of 3Q19 results. Management expects a net neutral impact from its triennial review of U.S. LTCI assumptions; we expect further progress on various initiatives (freeing up capital, expense efficiency and leverage reduction) and its valuation seems to be pricing in bad news. Clearly, there are concerns about its Asian businesses, but if the message is business as usual, this could be the flame that lights the torch." He adds, "Manulife stands to benefit from momentum in Asia and in wealth management, and expense efficiencies." Mr. Young is now projecting earnings per share of 73 cents, rising from 72 cents. The Globe reported on April 23 that Canaccord Genuity analyst Scott Chan kept Manulife at "buy." It was then worth $24.44.
© 2020 Canjex Publishing Ltd. All rights reserved.