Jefferies has revised its price target for Sun Life Financial (SLF, Financial), reducing it from C$96 to C$90, while maintaining a Buy rating on the company's shares. This adjustment comes as the firm reevaluates its projections for the Canadian financial sector, with expectations of growth resuming in 2026 following a revised outlook for 2025.
Despite the generally resilient nature of Canadian financials against market downturns, Jefferies highlights concerns about unresolved tariff issues and domestic factors such as imminent elections and potential negotiations, which currently offer limited clarity. These uncertainties contribute to the downside risks that the firm believes are not yet fully reflected in Sun Life Financial's stock price.
Furthermore, Jefferies has taken a cautious stance by lowering its estimates and issuing downgrades for other financial institutions, including the Canadian Imperial Bank of Commerce (CIBC) and the National Bank of Canada. These actions signal a broader concern about the near-term outlook for the Canadian financial sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Sun Life Financial Inc (SLF, Financial) is $59.08 with a high estimate of $62.85 and a low estimate of $55.30. The average target implies an upside of 4.69% from the current price of $56.43. More detailed estimate data can be found on the Sun Life Financial Inc (SLF) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Sun Life Financial Inc's (SLF, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sun Life Financial Inc (SLF, Financial) in one year is $86.72, suggesting a upside of 53.68% from the current price of $56.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sun Life Financial Inc (SLF) Summary page.
