IGM Financial Earnings: Continued Equity and Credit Market Headwinds Will Offset More Recent Results

While there was little in narrow-moat IGM Financial's third-quarter results that would alter our long-term view of the firm, we are reducing our CAD 42 per share fair value estimate to CAD 38 in response to weaker near-term AUM, revenue, and profitability than we had been projecting, as well as our expectation that the firm will continue to face equity and credit market headwinds over the next several quarters. We view the shares as being modestly undervalued relative to our revised fair value estimate.