Sun Life earnings preview: TD Securities upgrades to BUY, eyes U.S. stop-loss repricing

TD Securities upgraded Sun Life Financial Inc. (TSX: SLF-T) to BUY from Hold and raised its target to C$101, saying it expects SLF to report Q3/25 EPS around C$1.90. Analyst Mario Mendonca highlighted attractive relative valuation versus peers and the banks, and singled out the U.S. stop‑loss business as the key near‑term driver. What to watch: U.S. stop‑loss underwriting margins and pricing actions (management says increases are being implemented), Q3 EPS versus the C$1.90 estimate, and progress toward profitability improvement expected by mid‑2026. Investors should also monitor share‑buyback activity (4.8M shares repurchased in Q3), capital flexibility after a $1B subordinated debt issue, book value per share (C$39.57), cash/share (C$22.86) and ROE trends. Concerns vs. opportunities: TD flags recent cost pressures in stop‑loss that weighed on sentiment, but views repricing and SLF’s excess capital as opportunities to restore margins and shareholder returns. Rating: BUY; price target: C$101.00.