goeasy Ltd T.GSY

RBC

[retiredcf]

Seems like a massive overreaction to me. GLTA

July 4, 2024

goeasy Ltd. Announces CEO transition

TSX: GSY | CAD 205.00 | Outperform | Price Target CAD 225.00

Sentiment: Neutral

Summary: goeasy announced that President & CEO Jason Mullins will transition out of his role at year-end and remain a Director on the Board. Mr. Mullins will be involved in the selection of his successor, with the process underway. Mr. Mullins has been with GSY for 14 years, the last 6 of which were as President and CEO.

Our take: Given today's announcement was unexpected, we think any material decline in the share price could be an attractive buying opportunity given our view that the Company has strong organic growth prospects with a very good track record for growth, and we think the Board is likely to hire a President & CEO that is unlikely to make any major strategic or other changes in the near to medium-term. In our discussions with the Company, they reiterated today's announcement does not impact their current growth outlook/targets, strategy, etc. We think that Mr. Mullins staying with GSY for an extended period of time (through year end as President & CEO and Director thereafter) plus having GSY's prior President & CEO (and Executive Chair) David Ingram should help ensure a smooth transition.

[cpeczek]

The market doesn't like uncertainty, that's all this is. When details become clearer things should smooth over.