Barclays Downgrades Sun Life Financial (SLF) Stock to Underweight

Sun Life Financial Inc. (NYSE:SLF) is one of the Best Large Cap Value Stocks to Invest In. Barclays analyst Alex Scott downgraded the company’s stock to “Underweight” from “Equal Weight” with a price objective of C$82, down from the prior target of C$86. Moving into Q2 earnings, the firm expects growing risk in Medicaid dental, mainly for Sun Life Financial Inc. (NYSE:SLF). This resulted in the downgrade to “Underweight.”

Barclays Downgrades Sun Life Financial (SLF) Stock to Underweight

A financial advisor discussing retirement plans with an elderly couple in their home.

However, amidst a complex business environment, Sun Life Financial Inc. (NYSE:SLF) continues to advance its Client Impact Strategy and strategic imperatives, aided by new digital tools and capabilities, strong capital raising at SLC Management, and healthy sales and distribution in Asia. Sun Life Financial Inc. (NYSE:SLF)’s capital position remains robust with a LICAT ratio of 149%, offering resilience and financial flexibility. Notably, Morningstar highlighted that Sun Life Financial Inc. (NYSE:SLF) remains one of the Big 3 Canadian life insurers that collectively make up ~80% of the nation’s life insurance premiums.

The company’s strategic priorities consist of investment in digital capabilities, expansion of alternative asset management business (Sun Life Capital Management), increasing the health benefits market share and service offerings, as well as acceleration of Asian growth, added Morningstar.

While we acknowledge the potential of SLF to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SLF and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.