Clearly the Raymond James and National Bank analysts are looking at things from a very different perspective. GLTA
CIBC’s Nik Priebe reduced his Goeasy Ltd. target to $180 from $200, below the $205.56 average, with an “outperformer” rating. Other changes include: Raymond James’ Stephen Boland to $213 from $207 with a “strong buy” rating and National Bank’ Jaeme Gloyn to $155 from $220 with an “outperform” rating.
“Overall, a solid quarter with results relatively in line with our estimates and consensus though loan growth was higher than expected,” said Mr. Boland. “We note that the year-over-year comparison is somewhat difficult given the acquisition of Lendcare in 2Q21. Gross Loans grew 6 per cent in the quarter (7 per cent last quarter), and are now $2.15 billion. We are encouraged by the growing diversification of loan products that also have a stronger credit profile including home equity and auto loans. Through a combination of hedges, fixed term loans and floor agreements, higher interest rates should have a minimal impact to financials. Management provided strong 2Q22 guidance so the high growth trend will be maintained. For 2022, management expects to achieve the high end of the loan book guidance.”