On Friday, BMO Capital Markets adjusted its outlook on iA Financial Group (IAG (LON:ICAG):CN) (OTC: IDLLF) shares, raising its price target to Cdn$102 from Cdn$101. The firm continues to endorse the stock with an Outperform rating.
The upgrade comes in the wake of iA Financial's recent achievements, which include better operational expenditures, reduced strain from new business, improved sales in the U.S. Dealer Services sector, and a revised share buyback plan that has expanded the maximum allowable buyback from 5% to 8%.
These developments have been highlighted as key drivers for the company's positive trajectory. Additionally, iA Financial has taken measures to lessen the core earnings per share (EPS) sensitivity to interest rate fluctuations, aiming to mitigate future volatility.
Despite these advancements, BMO Capital has chosen to maintain its 2025 core EPS estimates for iA Financial. The new price target of Cdn$102 is based on a valuation of 9 times the projected 2025 core EPS and 1.4 times the estimated book value per share (BVPS) for the first quarter of 2025.
The firm's decision to uphold the Outperform rating indicates a continued confidence in iA Financial's ability to outperform the market or its sector in the foreseeable future. The revised price target reflects a slight but positive adjustment in the expected value of the company's shares, taking into account its recent operational improvements and strategic initiatives.
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