BMO Capital Markets analyst Tom MacKinnon initiated coverage on Trisura Group Ltd. with a "market perform" rating and $30 price target, writing that the company's Canadian specialty property and casualty business provides a base for stable and profitable growth.
Trisura in the first quarter launched a U.S. specialty property and casualty business, and MacKinnon sees substantial potential in the new line. The venture may drive additional growth and value, but the analyst wants to see how it plays out in the coming quarters before assigning a higher multiple to the insurer.
Despite the fact that Trisura's U.S. business is still in its initial stage, MacKinnon expects it to do well given that the company has extensive U.S. leadership. He also based his assessment on the $40 million capital invested by Brookfield Asset Management Inc. to support Trisura's U.S. startup, coupled with the continuous 15% ownership by current and former executives of Brookfield Asset Management.
MacKinnon's full-year EPS estimates on the company are $1.30 and $2.06 for 2018 and 2019, respectively.
