Canaccord Genuity Sticks to Its Buy Rating for IGM Financial

In a new note to investors today, an analyst has provided a rating update for the Financial sector company, IGM Financial (TSX: IGM). Analyst Scott Chan CFA from Canaccord Genuity remains bullish on the stock and has a C$45 price target.

Chan CFA commented:

“We don’t believe the Street (including CG) included IFRS 15 into their estimates heading into the quarter. Excl. IFRS 15, we estimate IGM reported a slight earnings miss, mainly related to lower revenue (i.e. distribution fees, net investment income; see Fig. 1). That said, some of the key line items such as base management fees and non-commission expenses were better than we expected.”

According to TipRanks.com, CFA is ranked #3451 out of 4773 analysts.

Currently, the analyst consensus on IGM Financial is Moderate Buy and the average price target is C$45.71, representing a 18.1% upside.

In a report issued on April 19, Desjardins also reiterated a Buy rating on the stock with a C$46 price target.

Based on IGM Financial’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of C$826 million and quarterly net profit of C$52.85 million. In comparison, last year the company earned revenue of C$800 million and had a net profit of C$179 million.

IGM Financial, Inc. engages in the management and distribution of mutual funds and other managed asset products. It operates through the following segments: Investors Group, Mackenzie Investments, and Corporate and Other.

The company’s shares closed on Friday at C$38.69.