IGM Q1-26 Review: Valuing the Manager of Managers

Research evidence excerpt

IGM Q1-26 Review: Valuing the Manager of Managers

Canada | Brokers, Asset Mgrs & Exchanges

IGM Financial EquityMayResearch11, 2026

TARGET | ESTIMATE CHANGEIGM Q1-26 Review: Valuing the Manager of

RATING HOLDManagers

PRICE C$77.14^

While IGM posted an in-line EPS quarter, operating expenses surprised

negatively. That said, management reiterated its cost guidance, which we will be PRICE TARGET | % TO PT C$73.00 (C$68.00) | -5%

monitoring closely through the remainder of the year. As investors increasingly 52W HIGH-LOW C$77.55 - C$42.13

focus on IGM’s strategic investments, we introduced our NAV estimate, which FLOAT (%) | ADV MM (USD) 32.9% | 26.25

provides a valuation guardrail to our target price. We continue to believe the MARKET CAP C$18.0B | $13.2B

current share price fully reflects the potential growth from these investments. TICKER IGM CN ^Prior trading day's closing price unless otherwise

noted.

Cost control will remain on our radar for the remainder of 2026. While IGM reported EPS that

was in-line with expectations, operating expenses came in higher than expected. That said, the

FY (Dec) CHANGE TO JEFe JEF vs CONS

management team reiterated its core expense guidance of 4% growth for 2026, and highlighted

2026 2027 2026 2027

that the first quarter included elevated cost on technology investments that will not be repeated

throughout the remainder of the year. As a result, we should see operating expenses decline EPS <-1% NM +1% +3%

sequentially next quarter. EBITDA -1% -2% +1% +2%

Current share price is trading at a 9% discount to our NAV estimate. Given its large equity 2026 (C$) Q1A Q2 Q3 Q4 FY

positions in fast-growing businesses with little-to-no earnings contributions, we believe investors EBITDA 455.0 477.9 490.8 503.0 1,926.7