BMO Capital Markets analyst Tom MacKinnon has upgraded Sun Life Financial Inc., citing improving earnings visibility and the company's strong capital position.
The analyst said Sun Life offers an attractive total return potential due to the better visibility for earnings in the U.S. along with a return to growth in Asia. MacKinnon said the company's underlying EPS for the fourth quarter of 2017 was slightly better than expected, due to better margins at its MFS Investment Management segment and improvements in mortality and morbidity.
The BMO Capital Markets analyst increased his 2018 and 2019 EPS estimates to C$4.65 and C$5.00 from C$4.60 and C$4.95, respectively. He also upped his price target on the company to C$61.