Sun Life Financial stock initiated with Neutral rating at UBS

Published 16/10/2025, 15:56
Sun Life Financial stock initiated with Neutral rating at UBS

Investing.com - UBS initiated coverage on Sun Life Financial Inc. (TSX:SLF) (NYSE:SLF) with a Neutral rating and a C$90.00 price target.

The investment bank sees approximately 1% downside to consensus earnings per share estimates, citing risks related to near-term earnings emergence for Sun Life’s U.S. business, which represents about 20% of earnings in normalized periods.

UBS believes the stop loss and dental pressures for Sun Life are temporary and addressable through price adjustments or mix shifts, though these issues create near-term uncertainty for the company.

The firm expects Sun Life to continue driving core earnings growth in its Canada, Asset Management, and Asia segments regardless of U.S. pressures, projecting underlying net income growth of 7-8% in 2025/26.

UBS notes that Sun Life stock currently trades at approximately 11 times price-to-earnings ratio, roughly in line with its trailing two-year average, supporting the Neutral rating.

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