Tom Mackinnon, an analyst from BMO Capital, reiterated the Hold rating on IGM Financial (IGIFF – Research Report). The associated price target was lowered to C$46.00.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Tom Mackinnon has given his Hold rating due to a combination of factors affecting IGM Financial’s performance. The company’s Q1/25 adjusted EPS of $1.00 fell short of both Mackinnon’s and the consensus estimates, primarily due to lower net asset management fees and higher operating expenses than anticipated. These results were influenced by seasonal factors and modest fee pressures, which also affected advisory and program fees.
Despite some positive net inflows in Q1/25, the outlook remains uncertain as April saw significant net outflows, particularly from institutional sources. Mackinnon has lowered the forward adjusted EPS estimates by 4%, reflecting ongoing challenges such as lower net asset management fee rates and increased asset-based compensation rates. Consequently, the target price was reduced by $1, maintaining a Market Perform rating given the competitive pressures in the Canadian market and the company’s current valuation relative to its historical average.
In another report released on May 9, Scotiabank also maintained a Hold rating on the stock with a C$51.00 price target.