02:34 PM EDT, 05/10/2024 (MT Newswires) -- Sun Life Q1/24 earnings were a disappointment, with the EPS miss driven mainly by the U.S. Group and Asset Management., notes National Bank. The U.S. Group segment was hampered largely by Dental (i.e., DentaQuest), which explained nearly two-thirds of the total U.S. profit drop, analyst Gabriel Dechaine writes. The business reported negative claims experience along with an expense spike.

In asset management, both MFS Investment Management and SLC Management reported negative operating leverage, which was disappointing considering the positive market backdrop, Dechaine notes. "We acknowledge, though, that seasonality usually translates into higher expenses at MFS during Q1s (and Q2s), with moderation thereafter."

Given the strong results reported by peers this quarter, SLF stock could be under pressure in the near term.

Maintain Sector Perform. Target trimmed to $72, from $73.

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