Raymond James Raymond James’ Stephen Boland cut his target for shares of Goeasy Ltd. to $202 from $213, maintaining a “strong buy” recommendation. The average on the Street is $204.22.
“We recently had an update call with management heading into 2Q22 reporting,” he said. “Our medium-term positive outlook remains unchanged. We do not believe the 3-year guidance will be adjusted materially despite the concerns surrounding higher interest rates and the impact on credit conditions and growth. As a reminder, GSY made an equity investment into Canada Drives recently that should bolster originations in the used car segment. We are lowering our estimates slightly heading into 2Q22. The major change to our estimates is due to operating margin. Similar to many of our companies, we believe that inflation is impacting many aspects of the business, including salaries and technology. Additionally, as interest rates continue to rise quickly, we are being more conservative in our charge-off assumptions.”