- BMO Capital analyst Tom MacKinnon downgraded Manulife Financial Corp (TSX:MFC) (NYSE:MFC) to Market Perform from Outperform, citing weak 1Q22 results and disappointing IFRS17 disclosure.
- The analyst also lowered the price target to C$27 from C$37.
- MacKinnon states that while MFC points to perhaps a larger than expected 20% decline in BVPS/10% decline in core EPS upon transition to IFRS17 in 2023.
- Also See: Manulife's Q1 Earnings
- The company's disclosure provided little detail to assess the growth/earnings profile under IFRS17, particularly for the all-important CSM.
- While a resilient balance sheet and strong excess capital position help, MacKinnon prefers to pause and reassess how MFC's KPIs, including the all-important contractual service margin (CSM), unfold in 2023 under IFRS17.
- Price Action: MFC shares are trading lower by 10.35% at C$21.83 on TSX and lower by 10.68% at $16.72 on NYSE on the last check Thursday.
Get all your news in one place.
100’s of premium titles.
One app.
Start reading
One app.
Get all your news in one place.
100’s of premium titles. One news app.
What's Going On With Manulife Financial Shares Today
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member?
Sign in here
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member?
Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member?
Sign in here
Our Picks