Equitable Group: Navigating Challenges and Opportunities with a Buy Rating

Equitable Group (EQGPF – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Etienne Ricard from BMO Capital maintained a Buy rating on the stock and has a C$115.00 price target.

Etienne Ricard’s rating is based on a combination of factors that highlight both challenges and opportunities for Equitable Group. Despite the persistence of elevated credit provisioning and rising impaired loans, the company’s valuation offers a margin of safety as it trades slightly above book value. This suggests that the market has already priced in some of the risks, providing a potential upside for investors.
Furthermore, while the outlook for the housing market appears cautious, Equitable Group is executing its strategy effectively, diversifying its asset and liability sides. Although higher credit losses may require patience in the short term, the expectation of moderating provisions for credit losses and an improving housing market supports the potential for earnings growth. These factors contribute to Ricard’s Buy rating, reflecting confidence in the company’s ability to navigate current challenges and capitalize on future opportunities.

According to TipRanks, Ricard is a 5-star analyst with an average return of 22.5% and a 69.52% success rate. Ricard covers the Financial sector, focusing on stocks such as Sprott, goeasy, and First National Financial.