Laurentian Bank (TSE:LB), a Montreal-based bank, announced yesterday that it’s conducting a strategic review aimed at maximizing value for stakeholders and shareholders. This caused the stock to soar by over 43% at its high today, reaching price levels not seen since 2018.
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Cormark Securities subsequently upgraded the bank’s stock from “Market Perform” to “Buy,” hinting at potential acquisition interest from larger Canadian banks like the Bank of Nova Scotia (TSE:BNS) (NYSE:BNS) and the Canadian Imperial Bank of Commerce (TSE:CM) (NYSE:CM). This forms part of a broader trend among cash-rich Canadian banks leaning towards acquisitions for market share expansion.
The review, reportedly initiated after a bid from a rival bank and managed by JPMorgan Chase (NYSE:JPM), offers larger Canadian banks a unique expansion opportunity in Quebec. The bank assures a continued focus on customer service, deposits, and funding structure optimization throughout the review process.
Is Laurentian Bank Stock a Buy, According to Analysts?
According to analysts, Laurentian Bank earns a Hold consensus rating based on one Buy, four Holds, and one Sell assigned in the past three months. The average Laurentian Bank stock price target of C$39.54 implies 7.9% downside potential. However, more analyst upgrades may come in following the news.
