TDW initiating coverage...$11 Target...very positi Element Financial Corp.
(EFN-T) C$9.40
Rare Growth Story in Canadian Financial Services
Event
Initiating coverage.
Impact
POSITIVE. We believe that this company is poised for significant multi-year
asset growth that will deliver significant earnings growth, healthy BVPS
expansion, and an improving ROE as it adds leverage and builds operational
scale. We see material upside relative to our outlook and consensus, given
the prospects for significant additional asset growth and potential
favourable contributions from future acquisitions. Relative to the
Canadian banks that we cover, Element is likely to post materially faster asset
growth, enjoy significantly wider spreads, and deliver strong credit trends,
resulting in dramatically faster EPS growth, albeit with a higher level of risk.