Manulife Financial price target raised to C$47 from C$40 at Barclays

Barclays analyst Alex Scott raised the firm’s price target on Manulife Financial (MFC) to C$47 from C$40 and keeps an Equal Weight rating on the shares. As Barclays assesses the landscape for the insurance industry heading into 2025, it remains more optimistic on the life insurers as it sees improving free cash flow, benefits from higher interest rates, sizeable excess capital positions, strong group benefits earnings, and potential for further reinsurance and merger transactions. While property and casualty is a very high-quality business over the long term, we are at a tougher part of the underwriting cycle for property coverage, and casualty loss cost trend still poses a risk that will potentially prevent more favorable development, the analyst tells investors in a research note. As a result, the firm is more selective in its stock picks.