Sun Life Financial Inc. (SLF:NYE) Analysts rate as a Buy, $71 target

STA Research
by: STA Research

Based on the Sun Life Financial Inc (SLF stock) forecasts from 11 analysts, the average analyst target price for Sun Life Financial Inc is CAD 70.94 over the next 12 months. Sun Life Financial Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Sun Life Financial Inc is Slightly Bearish, which is based on 4 positive signals and 9 negative signals. At the last closing, Sun Life Financial Inc’s stock price was CAD 62.75. Sun Life Financial Inc’s stock price has changed by +0.14% over the past week, -1.35% over the past month and -1.91% over the last year.

STA Research maintains the Hold rating on the stock, and $58 target on the stock.

Barclays Capital recently posted a $71 target on the company’s stock with a Outperform rating and $71 target on the company.

Sun Life Financial Inc. is a financial services company that offers insurance, wealth management, and asset management to people and businesses around the world. The corporation was established in 1871 and is based in Toronto, Ontario, Canada.

 

What we like:

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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