Tom Mackinnon, an analyst from BMO Capital, maintained the Hold rating on IGM Financial. The associated price target was raised to C$54.00.
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Tom Mackinnon has given his Hold rating due to a combination of factors including the current market valuation and competitive landscape. Despite raising earnings estimates and target prices due to stronger-than-expected asset under administration and management, the stock’s valuation remains above its historical average, which suggests limited upside potential.
Additionally, the Canadian market’s saturation and the competitive advantages held by banks pose strategic challenges for IGM Financial. While there is an expectation of mid-single-digit EPS growth in more stable market conditions, these factors contribute to a cautious outlook, justifying the Hold rating.
In another report released on October 21, RBC Capital also maintained a Hold rating on the stock with a C$52.00 price target.
IGIFF’s price has also changed moderately for the past six months – from $31.200 to $38.040, which is a 21.92% increase.