Manulife Financial Corp
MFC: XTSE (CAN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CAD 77.00 | Fzfd | Llslpwvh |
Manulife Financial Starts 2022 With Headwinds
No-moat Manulife Financial reported a challenging start to 2022. Core earnings per share of CAD 0.77 fell below the consensus estimate of CAD 0.82. While rising interest rates are positive, Manulife has greater exposure to Asia compared with its peers, and the Asian market is seeing more COVID-19-related headwinds. In addition, the market downturn will weigh on the firm’s asset-based revenue in its wealth and asset management segment. As a result, we anticipate reducing our fair value estimate in a range of 5%-15%.