The Globe and Mail reports in its Tuesday edition that Scotia Capital analyst Meny Grauman sees the Canadian life insurance industry as "an attractive tariff safe haven" ahead of its quarterly earnings season. The Globe's David Leeder writes that Mr. Grauman has reaffirmed his "sector outperform" recommendation for Sun Life Financial. He boosted his share target to $98 from $96. Analysts on average target the shares at $91.17. Mr. Grauman says in a note: "It goes without saying that lifecos do not actually move goods across international borders, but even second order macro-economic impacts should be modest as core insurance products are relatively recession resilient, and both earnings streams and market exposure are quite geographically diversified across most names. ... Over the last month the lifeco group has lagged the TSX even in the face of tariff talk, and despite the fact that long yields continue to move higher in the U.S. while North American equity markets continue to perform very well. Put it all together, and we like the set up for year-end lifeco reporting both in terms of quarterly fundamentals themselves, but also because of the ability of these stocks to provide shelter from the coming tariff storm."
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