The Globe and Mail reports in its Monday, Nov. 16, edition that Scotia Capital Meny Grauman cut Manulife Financial to "sector perform" from "sector outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Grauman cut his share target by $2 to $23. Analysts on average target the shares at $24.21. Mr. Grauman says in a note: "The firm delivered a beat on the back of better-than-expected [earnings] streams and 9-per-cent year-over-year growth in expected profit, and on a segmented basis performance in Asia, the U.S., and asset management all exceeded expectations. In addition, investment-related experience in the ALDA book was positive, and the firm entered into another reinsurance agreement that unlocked capital and delivered a gain on sale that offset the annual assumption review. And yet despite all of these incremental positives, the shares underperformed on earnings day, and we believe this underperformance will persist as investors continue to be more focused on tail risks than core earnings momentum. These risks include the value of the firm's legacy exposure and the risk that MFC will have to reduce its ALDA return assumptions even in the face of Q3's positive result."
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