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Analysts Are Betting On Sun Life Financial Inc. (TSE:SLF) With A Big Upgrade This Week

Sun Life Financial Inc. (TSE:SLF) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Sun Life Financial from its nine analysts is for revenues of CA$41b in 2023 which, if met, would be a substantial 72% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$37b in 2023. It looks like there's been a clear increase in optimism around Sun Life Financial, given the solid increase in revenue forecasts.

Check out our latest analysis for Sun Life Financial

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Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Sun Life Financial's rate of growth is expected to accelerate meaningfully, with the forecast 55% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 3.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sun Life Financial is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Sun Life Financial next year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Sun Life Financial.

Need some more information? We have analyst estimates for Sun Life Financial going out to 2024, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.

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