Research Alert: CFRA Keeps Ia Financial At Hold On Mixed Core Eps Results In Wealth & Insurance
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain IAG at 3-STARS (Hold) and increase the 12-month target price from CAD176 to CAD184, which is generated from our FY 27 P/E multiple of 11.5x our FY 27 adjusted EPS estimate of CAD16.00. We increase our FY 26 EPS estimate to CAD14.87 (up CAD0.48) and our FY 27 EPS estimate to CAD16.00 (up CAD0.74). The RF acquisition has propelled the Wealth Management segment into the driver's seat in regard to growth and performance. Core earnings in Q1 2026 was ~46% from Wealth versus ~38% in Q1 2025. While asset managers have been benefiting in an asset appreciating market environment, insurance performance has been weaker recently with Q1 core earning declines. Wealth Management reported core earnings up 24% Y/Y, Insurance - Canada core earnings declined 4%, U.S. Operations core earnings decreased 13%, and Investment grew 9% Y/Y. The NCIB program was increased to repurchase 8% of outstanding shares versus the previous 5%, and the dividend was increased by 11%.
