EVENTS:   The Roaring 2020s or a Rerun of the 1970s? - Edward Yardeni/Yardeni Research - 24 Mar 26   Best Equity Short Ideas Conference Call 13 - Thomas Chanos/Badger Consultants & Dr. Aaron Fletcher/Bios Research & Jonathan Telgener/Channel Dynamics & Ed Steele/Iron Blue Financials & John Zolidis/Quo Vadis Capital & Mark Hiley/The Analyst - 26 Mar 26     ROADSHOWS: Chinese Equity Ideas & Channel Checks Across 50 sub-sectors - Don Ma /Horizon Insights   •   London   23 - 27 Mar 26       Long Short European Equity Research - Harry Grist /The Analyst   •   New York   26 Mar 26       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   27 - 27 Mar 26      
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Company Research

Manulife Financial (MFC CN) Canada

Financials

Veritas Investment Research

Current share price implies a ~6.0x multiple to Nigel D’Souza’s medium-term core earnings forecast (~30% discount to peers) - Nigel views this discount as unwarranted given MFC's strong capital position, positive cumulative policyholder experience during the pandemic, stable insurance earnings, and lower sensitivity to market declines. Nigel’s report includes details on the effects of IFRS 17, as well as an analysis of MFC's assets under management, Asian and Covid pressures and LICAT ratio.

Edition: 136

- 27 May, 2022


Canadian Banks

Financials

Veritas Investment Research

Rising risks trump rising rates - Nigel D’Souza expects market sentiment to shift over the coming months as slowing economic growth and elevated credit risk outweighs the benefit of higher NII. Ahead of this inflection point, Nigel is lowering his sector forward P/E multiple for Canadian banks to 10.6x (NB assuming a pre-pandemic PCL ratio, it currently stands at 13.5x, the highest multiple since the GFC). He downgrades Scotiabank, CIBC, National Bank, RBC and TD Bank to Sell. If you are taking money off the table in banks, consider moving it to the insurers. Nigel continues to pound the table on Manulife Financial and recently upgraded Sun Life and Great-West Lifeco to Buy.

Edition: 129

- 18 February, 2022


Manulife Financial (MFC)

Financials

Veritas Investment Research

Deeply discounted - trades at an unjustified and substantial discount to large cap peers. Excess capital is $23bn! To put that into context, MFC is currently trading at ~$46bn market cap. If MFC were a bank, that would be the equivalent of the bank trading as if it was insolvent. Solid underlying fundamentals will overcome negative investor sentiment. Dividend yield >4.5%. TP C$33 (30% upside).

Edition: 120

- 01 October, 2021