Scotiabank resumes coverage on Sagicor Financial stock with bullish view

Published 31/07/2025, 10:02
Scotiabank resumes coverage on Sagicor Financial stock with bullish view

Investing.com - Scotiabank (TSX:BNS) has resumed coverage on Sagicor Financial Company Ltd. (TSX:SFC) with a Sector Outperform rating and a price target of $10.00.

The price target implies a potential total return of 30% including dividends, according to Scotiabank’s analysis. The firm calculated the target by applying a 0.9x price-to-book value multiple on its 2026 book value per share estimate.

This valuation represents a 49% discount to the average multiple Scotiabank applies to larger life insurance companies, which the firm believes is justified by Sagicor’s lower return on equity (ROE).

Scotiabank highlighted Sagicor’s ongoing strategic transformation, which includes geographic diversification into Canada and better alignment of capital to higher-growth segments of the U.S. market.

The firm noted that Sagicor, as the smallest publicly traded life insurance company in Canada, often goes unnoticed by investors but sees strong upside potential if management can execute its strategy and move the company’s ROE toward its 13% target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.