
TSE:MFC
This summary was created by AI, based on 27 opinions in the last 12 months.
Manulife Financial (MFC) has received mixed reviews from various experts, highlighting both its strengths and concerns. Many praise the company for its solid performance in Asia and wealth management, coupled with a healthy dividend yield, making it an attractive income stock. However, some analysts express caution due to overvaluation, suggesting that MFC may be overbought, trading at over 2x book value with slow earnings growth of around 8-9%. While the stock is seen as a reasonable long-term holding, there are calls for potential buying opportunities during market pullbacks. The general sentiment reflects a wait-and-see approach given the mixed indicators and the overall health of the financial sector.
He doesn't know what the odds are of MFC winning this lawsuit that a hedge fund has trumpeted, but the case is a huge cloud. Rising interest rates will benefit all insurance companies whose stock prices haven't moved much but are paying fat dividend yields. MFC pays a 4.2% dividend. Maybe MFC isn't his top idea in this sector, but the problem with all the insurance companies is that they have so many policies with many many details--it's opaque, so what do they mean? And this has led to this lawsuit.
It's a little scary because it involves a lawsuit, which MFC considers unfounded. Anything can happen at a trial. But he feels that case law and common sense clearly support MFC. The good news it that they will clear their shorts. The lawsuit and short report have hid the fact that MFC has been showing better consistency. He see 9% share and dividend growth trading 7.2x earnings. If you own a lot of this, don't add to be safe. If you don't, yes you can buy it. He believes Manulife will clear this hurdle.
MFC has often been his top pick. For lifecos operating in the U.S. there are accouting issues between Canada and America in how they account for reserves. There is embedded value in MFC's long-term care assets that aren't reflected in the stock price. Now is a buying opportunity. He expects their next report to be fine.