First National Financial (FN) has received a new Hold rating, initiated by BMO Capital analyst, Etienne Ricard.
Etienne Ricard’s rating is based on a combination of factors that suggest a balanced risk-reward scenario for First National Financial’s stock. The company is expected to resume earnings growth in 2025, driven by more favorable monetary policies and an uptick in housing market transactions. However, recent macroeconomic and trade developments introduce uncertainty that could delay a significant recovery, leading to a cautious outlook.
Despite a constructive near-term outlook for single-family housing, with anticipated increases in origination and potential rate cuts by the Bank of Canada, there are concerns about tariff uncertainties that could negatively impact Canada and the company. The stock’s valuation metrics are normalizing, trading at a multiple consistent with historical averages, and offering a dividend yield slightly below its long-term average. Given these factors, the stock is rated as Market Perform, reflecting a cautious optimism about its future prospects.
In another report released today, Scotiabank also maintained a Hold rating on the stock with a C$45.00 price target.
Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FN in relation to earlier this year.