01:20 PM EDT, 05/13/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by $6 to $54, valuing SLF shares at 10.2x our 2025 operating EPS estimate of $5.30 (CAD7.25 converted at the May 13, 2024 spot price and lowered from CAD7.45) versus the three-year average forward multiple of 10.3x and the peer average of 9.8x. We cut our 2024 EPS estimate to $4.73 (CAD6.47) from $5.01 (CAD6.85) after Q1 EPS of $1.10 (CAD1.50) versus $1.11 (CAD1.52) lagged our $1.22 (CAD1.67) EPS estimate and the $1.21 (CAD1.65) consensus. Results reflected a 2% drop in profits in Canada, while the U.S. was a weak spot, with profits off by +20% on adverse claims in the dental unit, set to persist through 2024. This was partly offset by flat Asset Management profits (though net outflows ballooned to CAD10B from CAD1.8B a year ago) and 26% higher profits in Asia. At current levels, SLF shares trade at 10.7x our 2024 EPS estimate, a premium to peer and historical averages. Shares appear fairly valued in light of recent pressures, but are fine to Hold given the current yield of 4.6%.