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Strong Q4 Performance and Strategic Acquisitions Bolster Buy Rating for Intact Financial Corporation
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Strong Q4 Performance and Strategic Acquisitions Bolster Buy Rating for Intact Financial Corporation

Intact Financial Corporation (IFCResearch Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Tom Mackinnon from BMO Capital maintained a Buy rating on the stock and has a C$315.00 price target.

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Tom Mackinnon has given his Buy rating due to a combination of factors that reflect a strong outlook for Intact Financial Corporation. Firstly, the company demonstrated solid performance in Q4/24, exceeding expectations with an operating EPS of $4.93 compared to the consensus estimate of $4.31. This performance was supported by an impressive combined ratio of 86.5%, better than the expected 90.3%, indicating strong underwriting discipline and profitability actions.
Furthermore, the company shows potential for continued growth with a positive outlook for top-line growth and underwriting profitability, along with defensive characteristics suited for uncertain markets. The increased target price to $315 reflects these enhanced estimates and a favorable market outlook. Additionally, Intact Financial Corporation’s strategic acquisitions, such as RSA/Direct Line, are expected to contribute positively to its market position and value, supporting the Buy recommendation.

According to TipRanks, Mackinnon is a 5-star analyst with an average return of 16.7% and a 72.43% success rate.

In another report released yesterday, TD Securities also maintained a Buy rating on the stock with a C$324.00 price target.