BMO Capital analyst Tom Mackinnon has maintained their bullish stance on SLF stock, giving a Buy rating on May 9.
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Tom Mackinnon has given his Buy rating due to a combination of factors that highlight Sun Life Financial’s strong performance and future potential. The company has demonstrated a robust earnings quality and visibility, as evidenced by its impressive Q1/25 results, which surpassed expectations even when excluding various outsized items. This performance was driven by better-than-expected flows at MFS, stronger sales in Asia, and improved results in the U.S. Dental and stop-loss segments.
Additionally, Sun Life Financial has shown resilience in its business platform, consistently exceeding its underlying EPS objectives. The company has also maintained a strong capital generation rate and has a sector-leading underlying ROE target, which has recently been raised. These factors, along with a larger-than-expected dividend increase, contribute to the positive outlook and justify the increased target price and Buy rating.
Mackinnon covers the Financial sector, focusing on stocks such as Fairfax Financial Holdings, Sun Life Financial, and IGM Financial. According to TipRanks, Mackinnon has an average return of 16.7% and a 72.20% success rate on recommended stocks.
In another report released on May 9, RBC Capital also maintained a Buy rating on the stock with a C$88.00 price target.