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Power Corp: investors may find stock attractive, RBC says.

(CercleFinance.com) - RBC Capital Markets has raised its 12-month target price for the Power Corporation of Canada stock from 34 Canadian dollars to 36 Canadian dollars, while maintaining its "sector perform" rating on the stock, following better-than-expected quarterly earnings.

The bank said that Power Corp is currently trading at a 19.5% discount to its net asset value, which is in line with its 10-year average, a gap that the bank sees likely to remain around current levels over the next year.

For the discount to be narrower than the historical average, the market would need to see improvements at the Great-West Lifeco insurance unit, and particularly at asset management affiliate Putnam, RBC said.

However, RBC believes that investors may find the current share price "attractive," particularly those with a longer term investment horizon.

Power Corp, which is one of Canada's biggest diversified holding companies, has interests in financial services and renewable energy. Last Friday, it announced that Q3 net earnings rose to 470 million Canadian dollars, compared with 303 million Canadian dollars in Q3 2016.

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