CI Financial initiated with a Buy at Jefferies

Jefferies initiated coverage of CI Financial with a Buy rating and C$19 price target. The firm notes it is initiating coverage on the Canadian asset managers at “an inauspicious time,” given the impact that a potential domestic economic slowdown could have on equity markets and asset under management. However, Jefferies believes that economic concerns are largely priced in valuations and believes that a rally in equities in the latter part of the year will bode well for the asset management and wealth management businesses of the Canadian asset managers, the analyst tells investors.