Analysts Continue To Like Manulife After Q2 Results

Some analyst takeaways from Manulife Financial Corp.'s (MFC) second-quarter earnings release... "This quarter demonstrates the strength of MFC's distribution capabilities, product innovation and brand quality, as sales rose in a number of key lines," wrote UBS Investment Research analyst Jason Bilodeau, who rates the stock a 'buy' with a 12-month target price of C$47. He thinks the stock has underperformed so far this year "amid broader weakness" but that it looks reasonably valued.

Over at RBC Capital Markets, Andre-Philippe Hardy wrote that "stronger equity markets and higher interest rates were important contributors to the core EPS growth of 22%." He rates Manulife a 'top pick' with a target price of C$47. Mr. Hardy wrote that "Manulife's exposure to U.S. subprime housing appears manageable."

Risks to his target price include: consistently low interest rates, deteriorating equity market, acquisition risks and further appreciation in the Canadian dollar.

MFC 1-year chart