11:34 AM EST, 11/14/2024 (MT Newswires) -- Sun Life Financial ( SLF ) hosted an Investor Day on Wednesday, where it announced new medium-term targets: underlying EPS growth of 10% (was 8-10%), underlying ROE of 20% (was 18%+), and dividend payout ratio of 40-50% (unchanged).

"Following the event, we have greater confidence in SLF, and its higher EPS growth and ROE targets easily support our top valuation multiple among the large Canadian lifecos of 1.90x (Canadian lifeco valuation multiples range between 1.75x-1.90x)," said RBC analyst Darko Mihelic.

Sun Life also intends to continue to focus on growing capital-light businesses which include Asset Management and group benefits (~73% of underlying net income by business type) while also driving growth in Asia.

Reiterate Outperform, $82 target.

Price: 85.91, Change: +1.48, Percent Change: +1.75