IGM Financial Inc. (IGM:CA)
CIBC has initiated coverage on IGM Financial with a 12 month target price of C$61, expressing a constructive outlook on the company’s growth prospects. The firm believes that current economic conditions are becoming more supportive for the wealth management industry, creating an environment where IGM can achieve a sustained improvement in its net fund flows.
Stabilizing financial markets, easing inflation, and growing investor confidence are encouraging Canadians to re-engage with long-term investment products. These trends are expected to benefit both of IGM’s major subsidiaries, Mackenzie Investments and IG Wealth Management—which are well positioned to capture renewed demand through their large advisory networks, strong brands, and diversified product offerings.
CIBC also highlighted that improving sentiment in the retail investment space, combined with a more predictable interest rate outlook, should help drive better organic growth in assets under management. At the same time, IGM’s ongoing efforts to improve operational efficiency may further support profitability as inflows recover.
CIBC’s initiation reflects confidence that IGM has the scale, distribution strength, and market positioning to convert a more favorable macroeconomic backdrop into sustained business momentum.
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