Trisura Group Ltd (TSU – Research Report), the Financial sector company, was revisited by a Wall Street analyst on May 2. Analyst Tom Mackinnon from BMO Capital maintained a Buy rating on the stock and has a C$50.00 price target.
Tom Mackinnon has given his Buy rating due to a combination of factors that highlight the strengths and potential of Trisura Group Ltd. Despite a slight reduction in forward operating EPS estimates and a minor target price adjustment, the company’s fundamentals remain robust. The consolidated underwriting income aligns with expectations, and there is notable growth in Trisura Specialty’s net premium earned, which increased by 21%. Additionally, the U.S. Programs segment demonstrated a better-than-expected combined ratio, underscoring a focus on profitability over growth.
Furthermore, the valuation of Trisura Group Ltd is considered attractive, with a price-to-earnings ratio of 2.2x for a return on equity of 17-18%. Although there was an EPS miss due to higher corporate expenses and tax rates, the absence of losses from exited lines and the focus on profitability in the U.S. Programs segment are positive indicators. These factors, combined with the company’s solid defensive characteristics and potential for multiple expansion, support Mackinnon’s Buy rating.
In another report released on May 2, CIBC also maintained a Buy rating on the stock with a C$50.00 price target.