Opinions
The Panic-Proof Portfolio (Stockchase Research)
Intact Financial Preferred 5.3% Perpetual
IFC.PR.F-T
TOP PICK
Feb 13, 2024
Stock price when the opinion was issued
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The parent company, IFC, is a diversified insurance provider that trades at 15x earnings and 14% ROE. The company has been managing cash reserves to retire debt and buy back shares. The preferred shares -- with a high credit rating (Pfd-2) -- have declined below their $25 par value, due to rising interest rates. This affords upside opportunity of 19%. We recommend placing a stop-loss at $17. Yield 6.3%
(Analysts’ price target is $25.00)We reiterate IFC.PR.F as a TOP PICK. The parent company, IFC, is a diversified insurance provider that trades at 15x earnings and 14% ROE. The company has been managing cash reserves to retire debt and buy back shares. The preferred shares -- with a high credit rating (Pfd-2) -- have declined below their $25 par value, due to rising interest rates. This affords upside opportunity over 18%. We continue to recommend a stop at $17. Yield 6.3%
With the Canadian Central Bank hinting that further interest rate increase are unlikely going forward as inflation abates, we again reiterate IFC.PR.F as a TOP PICK. The parent company, IFC, trades at 14x forward earnings and 2.6x book value. Cash reserves of the parent are growing, while debt is repaid thanks to the issuance of further shares. We recommend trailing up the stop (from $17) to $19, looking to achieve $25 -- upside potential of 19%. Yield 6.0%
We again reiterate IFC.PR.F as a TOP PICK. The parent, Intact Financial, is growing cash reserves while retiring debt and it trades at 15x forward earnings. We recommend setting at stop at $19, looking to achieve its par value of $25 -- upside potential of 19%. Yield 6.0%