IGIFF - TD Cowen turns bullish on IGM Financial after Rockefeller Capital deal

2023-04-05 13:22:55 ET

TD Cowen on Wednesday upgraded IGM Financial ( OTCPK:IGIFF ) to Buy from Hold after the wealth and asset management firm acquired an ~20.5% stake in Rockefeller Capital Management.

IGM ( OTCPK:IGIFF ) also announced the sale of its investment planning counsel wealth business to Canada Life Assurance for C$575M.

"We see good value in IGM's strategic investments, and believe the growth profile has been enhanced with the addition of RCM ," said TD Cowen analyst Graham Ryding. "IGM is gaining exposure to what appears to be a high-quality, high-growth wealth platform in the large U.S. market."

Ryding noted that IGM ( OTCPK:IGIFF ) has a strong growth profile, brand value with the Rockefeller deal and a full suite of family office solutions. "In turn, IGM is surfacing value here by selling its IPC wealth platform for a healthy 16x trailing EBITDA (proceeds to fund 68% of the RCM investment)."

TD Cowen raised its price target on IGM ( TSX: IGM:CA ) to C$48 from C$44, implying 21.1% potential upside to the last close of its shares listed on the Toronto Stock Exchange.

Wall Street analysts on average rate IGM ( OTCPK:IGIFF ) Hold, but SA Quant rates the stock Strong Buy .

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