logo
  Join        Login             Stock Quote

Power Financial PT Lifted To $30.50 By CIBC After Q1, 'Sector Performer' Maintained

 May 15, 2012 03:12 PM


(By Balaseshan) CIBC World Markets Inc. analyst Paul Holden increased his price target on shares of Power Financial Corp. (TSE:PWF) to $30.50 from $29.50, while maintaining "Sector Performer" rating.

After the company's first quarter results, the brokerage lowered its 2012 EPS estimate to $2.47 from $2.59 and its 2013 estimate to $2.76 from $2.84.

PWF reported operating EPS of $0.52, below Holden's estimate of $0.59 and consensus of $0.58. EPS were $0.52 in Q1-2011 and $0.60 in Q4-2011. The earnings miss was related to lower earnings from Great-West Lifeco Inc. (TSE:GWO). Net asset value (NAV) increased by 16% sequential, with GWO contributing most of the growth.

GWO's earning contribution increased by 8% year-over-year, while IGM Financial Inc.'s (TSE:IGM) contribution decreased by 6% year-over-year. Pargesa swung from a contribution of $4 million in Q1-2011 to a loss of $2 million in Q1-2012. Pargesa's disposition of Arkema and Pernod Ricard contributed $0.12 per share to non-operating earnings.

[Related -Four Stocks in the Dow Making Fresh 52 Week Lows]

Holden lowered his earnings estimates that is driven by reduced EPS estimates for GWO and IGM. He is now forecasting earnings growth of 4% for 2012 and 12% for 2013. A dividend increase in 2012 or 2013 is unlikely.

The analyst's price target increases to $30.50, primarily to account for the price target increase in GWO (from $23.50 to $25.00). The NAV discount has narrowed to 6.2% compared to the long-term average of 8.4%.

Power Financial is a diversified international management and holding company. It operates in four segments: Great West Lifeco Inc. (Lifeco), IGM Financial Inc. (IGM), Parjointco N.V. (Parjointco) and Other.

[Related -Some Thoughts on Greece’s Don’t-Call-It-a-Default]

PWF is trading up 0.37% at $26.99 on Tuesday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageFour Stocks in the Dow Making Fresh 52 Week Lows

“What gets weak tends to get weaker; what gets strong tends to get read on...

article imageGreece And The Cemetery For Your Wealth

The Greek default is merely the opening act of the worst sovereign-debt crisis in history. By the time it read on...

article imageAll Signs Point To Higher Gold Prices

In the face of historic monetary stimulus from nearly every major central bank in the world over the past read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

Greece And The Cemetery For Your Wealth
More Articles on: Finance , Utilities



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.