TD Securities is upping its target price on C.I. Fund Management Inc.’s following its proposed purchase of Synergy Asset Management, Assante Corp.’s Canadian assets and Skylon Capital Corp. But is is recommending a reduction in Assante holdings.

Analyst André-Philippe Hardy is increasing his target price on C.I. from $12.50 to $14.50, as a result of the three acquisitions. But he is maintaining a hold call on the stock. “Strategically, C.I. will benefit mostly from an expanded product lineup and increased exposure to distribution, which alleviates some of our
sales and margin pressure concerns,” he says in a new report. “Financially, the transactions should be accretive to C.I. shareholders.”

Hardy is calling for investors to reduce their positions in Assante’s stock. He values the firm’s U.S. operations at $1 per share, lower than the $1.20 to $1.45 range that the firm has suggested. Hardy says he does not believe that a higher bid is likely. “This transaction was the result of an auction, a $22 million break fee is in place, 32% of Assante’s common shares have entered into agreements with CI to vote in favour of the agreement, CI already owns 9.1% of Assante1s shares outstanding and Assante’s board has concluded unanimously that shareholders should vote in favour of the arrangement.”

The upgrade in Hardy’s report goes to Investors Group Inc., which remains his top pick in the sector. The stock is upgraded to a “buy. This reflects
the slightly higher multiples we are now using to value all three industry players, given the recent rebound in equity markets, some signs of
improvement in net sales, the positive near-term outlook for the U.S. economy and an increased focus by us on the free cash flow generation
capacity of the companies we cover.”