Manulife Financial (MFC) Stock Forecast & Price Target

Manulife Financial demonstrates a positive outlook due to a steady increase in its core EBITDA margin, which rose by 80 basis points quarter-over-quarter and 290 basis points year-over-year to reach 28.6%. The Asia segment has shown substantial resilience, with earnings increasing approximately 25% year-over-year in US dollars, alongside impressive sales growth in Hong Kong, indicating robust market demand. Additionally, revised forecasts reflect higher expected earnings growth of around 11% in 2025 and 8% in 2026, underpinned by improved insurance experience gains and revenue projections.

Manulife Financial's Asia segment reported core earnings of $619 million in Q3/24, reflecting a 4% quarter-over-quarter decline and falling short of forecasts, which raises concerns about the potential for growth stagnation. In Q4/24, Asia core earnings increased to $666 million but still remained below expectations, while projections for the Canadian segment indicate a core earnings decline of approximately 4% in 2025, primarily due to anticipated reductions in insurance service results. Furthermore, core earnings across other segments showed fluctuations, with notable declines in year-over-year performance, suggesting ongoing challenges impacting overall profitability and growth trajectories.