What's Going On With Manulife Financial Shares Today

BMO Capital analyst Tom MacKinnon downgraded Manulife Financial Corp MFC MFC to Market Perform from Outperform, citing weak 1Q22 results and disappointing IFRS17 disclosure.
The analyst also lowered the price target to C$27 from C$37.
MacKinnon states that while MFC points to perhaps a larger than expected 20% decline in BVPS/10% decline in core EPS upon transition to IFRS17 in 2023.
Also See: Manulife's Q1 Earnings
The company's disclosure provided little detail to assess the growth/earnings profile under IFRS17, particularly for the all-important CSM.
While a resilient balance sheet and strong excess capital position help, MacKinnon prefers to pause and reassess how MFC's KPIs, including the all-important contractual service margin (CSM), unfold in 2023 under IFRS17.
Price Action: MFC shares are trading lower by 10.35% at C$21.83 on TSX and lower by 10.68% at $16.72 on NYSE on the last check Thursday.

Momentum72.59

Growth64.24

Quality80.72

Value82.94

Short

Medium

Long

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