FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Igm Maintained At Sell On Valuation Concerns Amid Energy Crisis

By

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our Sell rating and increase the TP to CAD66 (CAD58). We raise our earnings multiple to 12.0x (above the upper band of the long-term average) based on market strength and capital allocation. We also raise our FY 26 adjusted EPS to CAD5.03 (+0.17) and FY 27 adjusted EPS to CAD5.50 (+0.44). While we appreciate the asset-light model driving double-digit growth and increased share buybacks, as well as its strategic investments, the driving forces are equity markets and the Canadian investor. With weaker macroeconomic data and inflationary effects, we could see fewer inflows, leading to a reversion to the mean for the multiple. Markets continue to make all-time highs in an energy crisis, and we are more comfortable with a contrarian view, with valuations where they are. Historically, IGM has traded at a forward EPS of 10.5x, while it currently trades at 13.6x. The 70% share price move in one year is appearing stretched considering its premium valuation and lowest dividend yield since the GFC (3.3%).

Related Articles

Research

Research Alert: CFRA Maintains Hold Opinion On Shares Of Exelon Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target by $2 to $48, 16.8x our next-12-month EPS estimate of $2.88, slightly above its five-year average of 16.4x. We lower our 2026 EPS view by $0.08 to $2.85 and lower 2027 EPS by $0.06 to $3.04. In our opinion, EXC now faces significant regulatory headwinds in Pennsylvania and Maryland. PECO's withdrawal of its rate case in April 2026 amid affordability concerns and Governor scrutiny creates uncertainty around timing and terms of future Pennsylvania filings, while Maryland's Utility RELIEF Act (awaiting Governor signature) prohibits forecast test years until April 2027 and constrains ratemaking tools for BGE, Pepco, and DPL. Despite these headwinds, EXC maintained its long-term (2025-2029) EPS growth guidance range of 5%-7% and expects to deliver near the top end of that range. From 2025 to 2028, we project EPS growth at a 5.6% CAGR, slightly below the midpoint of the range and below our expectations for peers, while we anticipate dividend growth close to a 5.1% CAGR, closer to peers.

$EXC
Research

Research Alert: CFRA Maintains Hold Opinion On Shares Of Exelon Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target by $2 to $48, 16.8x our next-12-month EPS estimate of $2.88, slightly above its five-year average of 16.4x. We lower our 2026 EPS view by $0.08 to $2.85 and lower 2027 EPS by $0.06 to $3.04. In our opinion, EXC now faces significant regulatory headwinds in Pennsylvania and Maryland. PECO's withdrawal of its rate case in April 2026 amid affordability concerns and Governor scrutiny creates uncertainty around timing and terms of future Pennsylvania filings, while Maryland's Utility RELIEF Act (awaiting Governor signature) prohibits forecast test years until April 2027 and constrains ratemaking tools for BGE, Pepco, and DPL. Despite these headwinds, EXC maintained its long-term (2025-2029) EPS growth guidance range of 5%-7% and expects to deliver near the top end of that range. From 2025 to 2028, we project EPS growth at a 5.6% CAGR, slightly below the midpoint of the range and below our expectations for peers, while we anticipate dividend growth close to a 5.1% CAGR, closer to peers.

$EXC
Research

Research Alert: CFRA Keeps Hold Rating On Shares Of Block, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target price by $10 to $81, 16.7x our 2027 earnings estimate, vs. XYZ's three-year historical forward P/E average of 25.4x. We raise our 2026 EPS view to $3.85 from $3.62 and 2027's to $4.85 from $4.35. Following a strong first quarter, XYZ significantly raised its full-year 2026 guidance, and is now projecting 19% gross profit growth and over 60% growth in adjusted EPS. This confidence is fueled by accelerating momentum across its core businesses, including explosive growth in Cash App's lending products and renewed strength in Square's target verticals. Crucially, the quarter provided the first tangible proof of its AI-centric strategy, with management citing a 2.5x increase in engineer productivity and dramatically accelerated project timelines. While the 82% surge in lending originations introduces heightened credit risk, this is currently being managed by a disciplined underwriting model where loss rates on mature customer cohorts are proving to be healthy and predictable.

$XYZ