Analysts Offer Insights on Financial Companies: Walter Investment (NYSE: WAC), Santander Consumer USA (NYSE: SC) and Sun Life Financial (NYSE: SLF)

By Jason Carr

Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Walter Investment (NYSE: WAC), Santander Consumer USA (NYSE: SC) and Sun Life Financial (NYSE: SLF).

Walter Investment (NYSE: WAC)

In a report released yesterday, Douglas Harter from Credit Suisse reiterated a Hold rating on Walter Investment (NYSE: WAC), with a price target of $4. The company’s shares opened today at $4.60.

Harter said:

“We are lowering our 2016 through 2018 estimates to -$0.80 (from -$0.55 ), $0.10 (from $0.25), and $0.55 (from $0.60) to reflect the lower operating results in the quarter and the inclusion of step-up amortization into adjusted estimates. At this point, visibility into earnings power – especially the necessary cost saves – remains low.”

According to TipRanks.com, Harter is a 3-star analyst with an average return of 1.4% and a 56.8% success rate. Harter covers the Financial sector, focusing on stocks such as Arlington Asset Investment, Newcastle Investment Corp., and American Capital Mortgage.

Walter Investment has an analyst consensus of Moderate Sell.

Santander Consumer USA (NYSE: SC)

In a report released yesterday, Moshe Orenbuch from Credit Suisse reiterated a Buy rating on Santander Consumer USA (NYSE: SC), with a price target of $20. The company’s shares opened today at $12.54.

Orenbuch commented:

“We reduce our Q4 estimate to $0.33 from $0.55 and our 2017 estimate to $2.50 from $2.60 to account for LOCM adjustments in the personal lending portfolio. Maintain target price and reiterate Outperform.”

According to TipRanks.com, Orenbuch is a 4-star analyst with an average return of 3.3% and a 67.9% success rate. Orenbuch covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp., and Capital One Financial.

Currently, the analyst consensus on Santander Consumer USA is Moderate Buy and the average price target is $16.17, representing a 28.9% upside.

In a report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $15 price target.
Sun Life Financial (NYSE: SLF)

In a report released yesterday, Gabriel Dechaine from Canaccord Genuity reiterated a Buy rating on Sun Life Financial (NYSE: SLF). The company’s shares opened today at $35.82.

Dechaine noted:

“We believe several key factors should help maintain SLF’s earnings momentum beyond the quarter, including: (1) strong operating profit growth of 30% in the Canadian segment, underpinned by positive morbidity experience in the key group insurance segment; (2) 19% YoY growth in Asia that continues the trend of double-digit expansion in this segment; (3) surprisingly strong 40% growth in the U.S. insurance segment, bolstered by yield enhancement gains and the Assurant acquisition; and (4) improving sales performance in SLF’s asset management businesses, with potential earnings upside from lower U.S. corporate taxes. Moreover, we note SLF yielded another positive outcome from its annual actuarial review that demonstrates the company’s actuarial reserve stability. Finally, a 4% dividend increase was in-line with our expectations.”

According to TipRanks.com, Dechaine is a 4-star analyst with an average return of 5.3% and a 67.2% success rate. Dechaine covers the Financial sector, focusing on stocks such as Canadian Bank of Commerce, Manulife Financial Corp, and National Bank of Canada.

Sun Life Financial has an analyst consensus of Moderate Buy.