Sun Life's U.S. Credit Issues May Hurt Its Rivals (at Seeking Alpha)

by: FP Trading Desk posted on: August 03, 2008 | about stocks: Sun Life Financial Inc.’s disappointing second quarter results produced a 6% sell-off in its shares on Thursday, and its gloomy U.S. macroeconomic outlook and decision to keep its dividend at C$9.36 per share didn’t help much either. This ends a five-year streak of semi-annual payout hikes. Analysts responded to the news by cutting their price targets and earnings forecasts on the insurer. Andre-Philippe Hardy moved to C$47 per share from C$50, along with reductions to his 2008 and 2009 earnings forecasts, noting that credit-related items and the impact of prior declines in equity markets will likely drag on future earnings. He told clients: The stock looks cheap but it is difficult to see the catalyst for reversal against peers given that the causes of recent... [read full story]