National Bank Raise TargetNational Bank Financial analyst Jaeme Gloyn made these target adjustments heading into earnings season: * Goeasy Ltd. ( “outperform”) to $235 from $210. Average: $231.11.
“We selected goeasy as a top pick in the case of a soft-landing scenario given its exposure to consumer lending,” he said. “When we selected GSY as a top pick in January, we explained that ‘GSY looks more like an H2 2024 story as we await visibility on the strength of the consumer’. Since then, our confidence in the outlook has improved considerably: 1) GSY has since reported two quarters of stable net charge-offs in-line with guidance, further proving they can manage net-charge offs in the face of rising unemployment, 2) Canadian unemployment has risen to 6.4 per cent in June from 5.7 per cent in January but remains well below GSY’s “moderately pessimistic” case of 8.5 per cent. This suggests the current guidance is achievable, and 3) GSY’s 3-year guidance and updated Q2 guidance suggests more rapid loan growth and stable net charge-offs are still to come. All of which re-affirm our confidence GSY can deliver 15-per-cent-plus EPS growth. While valuation upside may be limited in the near-term until we are given more clarity on leadership succession and macro backdrop, we believe continued execution and double-digit EPS growth will drive solid share price appreciation.”