IGM Financial (IGM:CA)
Analyst Update
TD Securities reiterated its Buy rating on IGM Financial with a 12 month target price of $73 per share, signaling confidence in IGM’s earnings leverage and capital return profile. TD’s stance likely reflects improving net sales trends at Mackenzie Investments, stabilization in fund flows, and operating leverage as markets recover. Analysts also see upside from margin normalization and potential strategic initiatives within IGM’s wealth platform, including efficiencies and distribution scale. TD’s vauluation model implies an attractive total return potential supported by dividend yield and earnings growth.
Scotiabank, maintained their Sector Perform rating on IGM Financial with a 12 month target price of $69 per share, indicating a more balanced risk-reward outlook. While acknowledging IGM’s solid franchise, strong balance sheet, and defensive fee-based revenue mix, Scotiabank appears to view the current valuation as largely reflective of near-term growth expectations. Concerns may center on competitive fee pressure, sensitivity to equity market levels, and the pace of sustained net inflows across product lines.
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