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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

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

Bullboard Posts
Post by dancheon Nov 15, 2017 3:09pm
174 Views
Post# 26970660

Scotia Maintain Sector Outperform rating and $5.00 target

Scotia Maintain Sector Outperform rating and $5.00 targetOUR TAKE: Overall, the quarter was a bit weak with Core EPS falling slightly short of expectations and book value per share declining more than expected. Given FX headwinds and the active transition of the business, we don't see much in the way of a strong read through from the quarter. Looking into 2018, ECN is expected to report in US functional currency alleviating the currency volatility, and results should benefit from the impact of recent acquisitions not fully reflected in the current quarter. Management noted that it remains confident that it will announce another acquisition before year end with a consistent focus on the specialty vendor finance segment with a capital light business model. ECN stated that recently acquired Service Finance is expected to exceed its initial targets for full year 2017 and guidance provided for 2018. ECN is expected to provide further detail and updates to its 2018 guidance numbers in mid-December. Maintain Sector Outperform rating and $5.00 target. Despite a 40% rally over the last twelve months, we continue to like the name and believe that valuation remains attractive with the stock trading at close to a 15% discount of its estimated book value.
Bullboard Posts