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ECN Capital Corp T.ECN

Alternate Symbol(s):  ECNCF | ECNNF | T.ECN.PR.C | T.ECN.DB | T.ECN.DB.A | T.ECN.DB.B

Financial Services
ECN Capital Corp. is a Canada-based company. The Company is a provider of business services to North American banks, credit unions, life insurance companies, pension funds and institutional investors (collectively, its Partners). It originates, manages and advises on credit assets on behalf of its Partners, specifically consumer (manufactured housing and recreational vehicle and marine) loans and commercial (inventory finance or floorplan) loans. The Company operates through two segments: Manufactured Housing Finance, and Recreational Vehicles (RV) and Marine Finance. Its business segment includes Triad Financial Services, Source One Financial, and Intercoastal Finance Group. The Triad Financial Services is a portfolio solutions platform focused on originating and managing longer duration secured consumer loan portfolios for active partner. The Source One Financial originates prime and super-prime loans to consumers to facilitate the purchase of recreational and marine vehicles.


TSX:ECN - Post by User

ECN Capital Corp
Bullboard Posts
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Post by ERTguyon Aug 09, 2017 9:56am
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Post# 26560249

Scotiabank increases price target to $5

Scotiabank increases price target to $5

Latest Research (8 August 2017)

OUR TAKE: Underlying earnings results were in line with expectations with strategic execution once again being the focus in the quarter. ECN announced the sale of $1.5B in rail assets, representing 65% of the portfolio as it right-sizes its rail car platform and frees up roughly $400M of equity to be redeployed. The assets were sold at a modest discount to book value (0.98x) but we are pleased with the de-risking and capital redeployment opportunities the sale provides.

Management noted that the strategic process of harvesting "legacy businesses" was ongoing. We estimate that the sale of the Canadian C&V business could free up an additional C$200M to C$250M in equity and generate a gain on book value.
We expect ECN to remain on the hunt for further acquisitions. Management stated that investors should likely expect one or two additional deals inferring that the initial build out would likely be completed by early 2018.

Increasing target to $5.00 and maintaining Sector Outperform. Despite a solid year-to-date stock performance, ECN currently trades at over a 15% discount to its book value despite high levels of optionality. With a one-year expected return of over 28%, we maintain our Sector Outperform rating. 


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