Sun Life Financial Inc. (SLF:TSX) Analyst rate as a Buy, $68 target

STA Research
by: STA Research
Sun Life Financial Inc.

Analysts rate Sun Life Financial’s stock with a consensus Buy rating with an average 12-months SLF stock price target of CAD 68.27 per share. The average User Rating is a Hold, with a average 12 month target price of $62 per share.

Barclays Capital recently cut the target on  Sun Life Financial’s stock price to CAD 67 from $71, and maintained the Outperform rating.

Based on the Sun Life Financial stock forecast from 13 analysts, the average analyst SLF stock price target is CAD 68.27 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 stock is Slightly Bearish, which is based on 4 positive signals and 9 negative signals. At the last closing, Sun Life Financial stock price was CAD 61.68Sun Life Financial stock price has changed by -0.46% over the past week, +4.40% over the past month and -7.28% over the last year.

 

About Sunlife Financial

Sun Life Financial Inc., a financial services company, provides insurance, wealth, and asset management solutions to individuals and corporate clients worldwide. It offers term and permanent life, as well as personal health, dental, critical illness, long-term care, and disability insurance products. The company also provides reinsurance products; investment counselling and portfolio management services; mutual funds and segregated funds; trust and banking services; real estate property brokerage and appraisal services; and merchant banking services. It distributes its products through direct sales agents, managing and independent general agents, financial intermediaries, broker-dealers, banks, pension and benefits consultants, and other third-party marketing organizations. The company was founded in 1871 and is headquartered in Toronto, Canada.

Most Recent Analysts Ratings for Sunlife Financial:

 

What we like:

High market capitalization:

Sun Life Financial stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

SLF 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:

SLF 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.

Superior capital utilization:

The management of Sun Life stock 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 Sun Life stock 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:

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

Overpriced compared to book value:

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

Poor return on equity:

The management of Sun Life stock 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:

Sun Life stock 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:

SLF stock price had negative total cash flow in the most recent four quarters.

Low Earnings Growth:

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

Low Revenue Growth:

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

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.