(RTTNews) - Friday, Credit Suisse upgraded Manulife Financial Corp. (MFC.TO: News ) shares to Neutral from Underperform with a price target of C$20. The brokerage lowered its 2009 EPS estimate to C$0.95 from C$1.45, while maintaining its 2010 estimate of C$2.00.

Analyst Bantis noted that with the 12% pullback in share price since August 6, Manulife's present valuation, 1.3x P/BV and 9.9x P/E, better reflects the company's operating fundamentals and potential headwinds. The analyst said that the management has largely addressed the adequacy of reserve liabilities with the completion of the annual assumption review for each region and product areas.

The analyst added that the prospect for a common equity offering near-term has diminished as CEO Donald Guloien suggested that Manulife will take time to achieve its goal of a fortress balance sheet, and management continues to take actions to reduce the company's exposure to equity markets.
In the near-term, the analyst expects Manulife shares to be somewhat range bound and still dependent on the movement of North American equity markets and interest rates. The analyst lowered estimates largely on this quarter's earnings miss to his forecast. However, the analyst's 2010 EPS remains unchanged at C$2.00 as management reaffirmed its near-term earnings guidance.

Currently, MFC.TO is up C$0.52 or 2.62% and trading at C$20.38.

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by RTT Staff Writer

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