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Manulife Financial (TSX:MFC) is drawing fresh attention after outlining a 50:50 life insurance joint venture with Mahindra & Mahindra in India, along with new AI driven underwriting tools rolling out in Canada and the U.S.
See our latest analysis for Manulife Financial.
Against this backdrop of new AI tools and the India joint venture, Manulife Financial’s share price sits at CA$51.97, with a 90 day share price return of 10.57% and a 1 year total shareholder return of 26.54%, adding to a very large 5 year total shareholder return of about 2.7x. This suggests momentum has been building rather than fading.
If news like Manulife’s AI push has you thinking about where technology meets insurance and finance, it could be a good moment to scan 56 profitable AI stocks that aren’t just burning cash as a starting point for further ideas.
With Manulife’s shares at CA$51.97 after strong multi year returns, and analysts’ targets sitting only slightly higher, the real question is whether its AI push and India expansion still leave upside on the table, or if markets are already pricing in future growth.
Against the current CA$51.97 share price, the most followed narrative pins Manulife Financial’s fair value closer to CA$53.67, using a 6.12% discount rate and detailed long term cash flow work.
The acquisition of Comvest Credit Partners meaningfully scales Manulife’s private markets platform and introduces high-growth, fee-based private credit capabilities; leveraging Manulife’s global distribution, especially into Asia’s fast-growing wealth pools, should drive a higher mix of stable, capital-light fee income, thereby improving net margins and supporting core EPS and ROE growth.
Curious how a shift toward capital light fee income, steady revenue growth assumptions and a future earnings multiple come together into that fair value? The full narrative lays out the revenue path, margin profile and valuation multiple that underpin CA$53.67 without spelling it out in the headline numbers.
Result: Fair Value of CA$53.67 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you still need to weigh up risks such as credit losses tied to below investment grade loans and commercial real estate, as well as the possibility of weaker outcomes in key Asian markets.
Find out about the key risks to this Manulife Financial narrative.
If you look at the numbers and story here and see things differently, you can quickly test your own view, Do it your way and compare it to the crowd.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Manulife Financial.
If you stop with just one company, you could miss opportunities sitting in plain sight, so use the screener to widen your watchlist with purpose.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MFC.TO.
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