BMO Capital analyst Etienne Ricard upgraded the rating on goeasy (EHMEF – Research Report) to a Buy today, setting a price target of C$200.00.
Etienne Ricard has given his Buy rating due to a combination of factors that highlight goeasy’s favorable risk-reward profile. The stock is currently trading at historically low multiples, which suggests that the market has already accounted for potential risks associated with U.S. trade uncertainties, such as increased unemployment and credit losses. This valuation provides a margin of safety, as Ricard notes that buying the stock at these levels has historically led to significant returns.
Furthermore, Ricard points out that the stock’s current price is close to the company’s liquidation value, offering downside protection. Additionally, there are multiple avenues for potential upside that have not been fully incorporated into current estimates, such as improvements in credit quality and loan growth. With a target price that implies a 46% return, Ricard’s analysis suggests that the potential rewards outweigh the risks, justifying the Buy rating.
According to TipRanks, Ricard is a 5-star analyst with an average return of 20.5% and a 62.24% success rate. Ricard covers the Financial sector, focusing on stocks such as goeasy, Victory Capital Holdings, and Apollo Global Management.