Evercore ISI Downgrades Sun Life Financial (SLF) to In Line on YTD performance

Evercore ISI analyst Thomas Gallagher downgraded Sun Life Financial (NYSE: SLF) from Outperform to In Line.

The analyst comments "We downgrade our rating on SLF from Outperform to In Line following strong YTD performance in the share price, combined with mixed fundamental trends and some new issues to watch for in its attractive Asian business. With more work still to be done in the US on both dental and stop loss, continued outflows in MFS, and some potential uncertainty in Asia regarding the MCV business, we see limited upside to both forward EPS vs. consensus and valuation, particularly when considering SOTP across geographies. We still see SLF being a high-quality franchise within the sector with limited risks on legacy liabilities and its investment portfolio, and that the fundamentals should remain in-tact in Canada. But on the other hand, the ongoing transition in the US across stop loss and dental businesses, persistent flow headwinds from MFS, and some potential regulatory uncertainty in Asia over the MCV market lead us to us to move to the sidelines on the stock for now."

For an analyst ratings summary and ratings history on Sun Life Financial click here. For more ratings news on Sun Life Financial click here.

Shares of Sun Life Financial closed at $79.91 yesterday.

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