Analyst Tom Mackinnon of BMO Capital maintained a Buy rating on iA Financial Corporation Inc (IAG – Research Report), with a price target of C$150.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Tom Mackinnon has given his Buy rating due to a combination of factors, including the solid growth and profitability demonstrated by iA Financial Corporation Inc. The company’s core Earnings Per Share (EPS) estimates have been increased by 2% and its target price has been raised to $150, reflecting a multiple of 1.85x EPS. This adjustment is supported by a two-year compound annual growth rate of 10% in core EPS from 2022 to 2024, aligning with the company’s medium-term target of over 10%, and a projected 2024 core Return on Equity (ROE) of 15.9%, consistent with their target exceeding 15%.
In addition, iA Financial Corporation Inc. has shown strong sales performance, especially in its Canadian and U.S. markets, with insurance and dealer services sales surpassing expectations. The company’s excess capital generation, amounting to $600 million annually after dividends, represents a high percentage of core EPS within the sector. This capital reserve, alongside a robust $1.4 billion in excess capital, presents opportunities for further expansion of Return on Equity, making the company a compelling investment choice.
According to TipRanks, Mackinnon is a 5-star analyst with an average return of 16.7% and a 72.43% success rate. Mackinnon covers the Financial sector, focusing on stocks such as Fairfax Financial Holdings, IGM Financial, and Sun Life Financial.
In another report released yesterday, TD Securities also maintained a Buy rating on the stock with a C$146.00 price target.