
TSE:SLF
This summary was created by AI, based on 9 opinions in the last 12 months.
Sun Life Financial Inc. (SLF) has garnered mixed reviews from experts, reflecting a blend of cautious optimism and concerns about its business model transformation. Originally focused on Canadian lifecos, the company has shifted towards mutual fund management, attracting criticism for taking on increased market beta. While some analysts acknowledge positive aspects, such as the potential benefits from rising interest rates and a robust money management division, others express concerns regarding recent challenges in asset management and the entry into private credit markets. Fundamentally, SLF trades at a comparatively lower P/E ratio than Canadian banks, but experts note that the growth rate remains modest. Overall, while the stock has rallied recently, many experts advocate for a cautious approach towards new investments, balancing potential growth against broader economic risks.
This had a negative US experience, which he sees turning around in the 2nd half. Just missed on the 2nd quarter. The Asian business is doing well being up 16%. He models them growing earnings at 7% compounded annually over the next couple of years. A little more expensive than Manulife (MFC-T), but coming much closer. Longer-term, this is fine. All things being equal, he would be buying it closer to $45.
Canadian Banks versus lifecos? He is a bigger fan of the lifecos. Manulife (MFC-T) and Sun Life (SLF-T) are going to get a big boost from rising interest rates. It is already starting to happen. The yield curve is steepening. Lifecos have been suffering and living with low interest rates for a long time. Both companies are also quite global. They have big presences in the US and in Asia. He sees a better earnings growth over the next few years.
He prefers Canadian banks over lifecos in Canada. This one has a concern with (MFS), their asset management division, which has continued to see outflows. It is well managed and they put out an okay quarter last night. They missed analysts’ expectations on MFS. Let it check back another dollar or two.