Research
Research Alert: CFRA Keeps Buy Opinion On Shares Of Manulife Financial Corporation
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our 12-month target price of USD42, valuing MFC shares at 12.8x our 2026 core EPS estimate of CAD4.50 (USD3.28, converted based on the May 14, 2026 spot rate and lowered from CAD4.60/USD3.35) and at 11.8x our 2027 EPS estimate of CAD4.90 (USD3.57, lowered from CAD5.00/USD3.64), versus the stock's one-year average forward multiple of 11x and a peer average of 12x. MFC posted Q1 2026 core EPS of CAD1.06 vs. CAD0.99 prior year, compared with our CAD1.10 estimate and the CAD1.09 consensus view. Net income surged to CAD1.147B from CAD485M, due to lower market experience charges and underlying business growth. We are encouraged by these results, particularly Asia's standout performance, with core earnings up 22% to CAD820M, APE sales up 11%, and NBV up 15%, reinforcing the region as MFC's key growth engine. Currently trading at 10.5x our 2027 EPS estimate (a discount to peer and historical averages) and currently yielding 3.3%, we view the shares as undervalued.
$MFC