Jefferies has revised its price target for IGM Financial (IGIFF, Financial), reducing it from C$47 to C$42, while maintaining a Hold rating on the stock. The financial services firm has adjusted its outlook for Canadian financials, anticipating growth to pick up again in 2026. However, Jefferies points out that a number of uncertainties, such as domestic elections and potential negotiations within Canada, present significant challenges in the near term.
Despite the historical resilience of Canadian financial institutions to market downturns, Jefferies stresses that current risks are considerable, and the full extent of potential downsides may not yet be reflected in market prices. As part of its broader reassessment of the sector, Jefferies has also lowered estimates and ratings for CIBC and National Bank of Canada, indicating a cautious stance on the Canadian financial landscape.
