Analysts Adjust Ratings for Sun Life, Manulife and Multiple Canadian Companies After Q3 Earnings

National Bank Financial analyst Gabriel Dechaine lowered Sun Life Financial Inc. (SLF) to a "sector perform" rating, citing greater uncertainty in its U.S. growth outlook and $81 million of experience losses in the U.S. segment. He reduced his price-to-book multiple and set a new target price of $120, down from $124. TD Cowen’s Mario Mendonca also cut Sun Life to a "hold" from "buy," with a target of $115, noting weaker U.S. long-term disability results and material outflows at the MFS business.

In contrast, Dechaine upgraded Manulife Financial Inc. (MFC) after the insurer posted third-quarter core earnings per share of $1.24, beating his $1.13 estimate. He highlighted strong Asian earnings and lower taxes, raising his target to $69 and maintaining an "outperform" rating.

Other notable analyst moves included:

• TD Cowen’s Aaron MacNeil downgraded Enerflex Ltd. (EFX) and Superior Plus Corp. (SPB) to "sell" amid uncertainty over Texas data-centre permitting following the governor’s race.
• Desjardins Securities’ Brent Stadler upgraded Brookfield Renewable Partners to "buy" on expectations of higher renewable and storage growth.
• TD Cowen’s Brian Morrison downgraded Linamar Corp. (LNR) to "hold" and cut the target to $106, citing reduced visibility in the Mobility segment.
• Scotia Capital’s Jonathan Goldman lowered Maple Leaf Foods (MFI) to "sector perform" after mixed Q3 signals, while raising the target to $33.
• Several analysts adjusted targets for companies such as ATS Corp., Stella-Jones Inc., and Fairfax Financial Holdings, reflecting earnings misses, cost-saving programs and macro-economic headwinds.

Overall, the third-quarter earnings season prompted a mix of downgrades, upgrades and target revisions across the Canadian market, reflecting divergent performance in North American and international segments and varying expectations for future growth.