goeasy (EHMEF – Research Report), the Financial sector company, was revisited by a Wall Street analyst on April 24. Analyst Etienne Ricard from BMO Capital upgraded the rating on the stock to a Buy and gave it a C$200.00 price target.
Etienne Ricard has given his Buy rating due to a combination of factors that highlight the favorable risk-reward profile of goeasy’s stock. Ricard points out that despite the macroeconomic uncertainties, goeasy’s strategic tightening of underwriting and collection policies has positioned it well to manage credit performance effectively. This is evidenced by the improvement in the credit quality of new originations, with the average credit score reaching new highs for three consecutive quarters.
Additionally, Ricard notes goeasy’s proactive approach in repurchasing shares, which reflects confidence in the company’s financial health and future prospects. The stock is currently trading at near trough multiples, effectively pricing in potential downside risks, yet offering a significant upside potential with a target price of $200. This target already incorporates safety margins in earnings and valuation multiples, making the stock an attractive investment opportunity.
In another report released on April 21, Jefferies also maintained a Buy rating on the stock with a C$182.00 price target.
EHMEF’s price has also changed slightly for the past six months – from $121.000 to $113.055, which is a -6.57% drop .